Nairobi/Asmara - Eritrea has rejected charges of military aggression against neighbouring Djibouti and accused the United States of contributing to "the proliferation and aggravation of crises" in the Horn of Africa.

Fighting between Eritrea and Djibouti this week, which came after weeks of tension at the border, left at least six Djiboutians dead and around 60 wounded.

The US State Department in a statement Thursday condemned Eritrea's military aggression and called on both sides to withdraw their troops from the border area.

The United Nations Security Council and the Arab League have also called on the two nations to sign a ceasefire and step back from an escalation of the conflict.

However, Eritrea reacted angrily to the criticism and said the US was to blame for instability in the region.

"The sad and well-known fact is that US policy and meddling in our region ... is contributing to the proliferation and aggravation of crises," the Eritrean Foreign Ministry said in a statement late Thursday evening.

Relations between Eritrea and the US are permanently strained.

Eritrea gained independence from Ethiopia in 1993 and then later fought a bloody war with its neighbour over borders. There is still tension between the nations.

The US provides aid and military support to Ethiopia, which it sees as a key ally in combating terrorism in the Horn of Africa.

Western governments also suspect Eritrea of aiding insurgents currently battling the transitional government in Somalia.

The US has a military base in Djibouti, as does France. (dpa)