Nairobi/N'Djamena - Heavy fighting has broken out in the east of Chad despite government claims that it had repelled a rebel attack.

Both the government and the rebel Union of Resistance Forces claimed victory in the latest fighting, which took place near the town Am Dam.

Am Dam is located some 100 kilometres north of Goz Beida, where fighting earlier this week prompted foreign aid workers to be evacuated from refugee camps there.

Communications Minister Mahamat Hissene said that over 100 rebel troops and several of its own soldiers were killed in the latest battles that took place thoughout Thursday, the BBC reported.

The UFR, which earlier said its goal was to reach the capital N'Djamena, claimed it had routed the army and was still en-route to the capital.

Chad on Tuesday accused Sudan of sending armed groups over the border just two days after the feuding countries signed a reconciliation agreement in Qatar.

Hissene told state radio that Sudan had sent in two armoured columns while the "ink has yet to dry on the Doha accord."

Sudan quickly denied the allegation.

The two countries only resumed diplomatic ties in November after cutting them in May 2008. The neighbours have long accused each other of conducting proxy wars through rebel groups.

In May last year, Khartoum accused Chad of backing Darfuri insurgents who attacked the Sudanese capital. Chad countered by blaming Sudan for an earlier rebel attack on N'Djamena.

Chad and Sudan signed the agreement, brokered by Qatar and Libya, in Doha on Sunday.

UN Secretary General Ban Ki-moon said Wednesday that the peacekeeping mission in Chad and the Central African Republic, known as MINURCAT, would protect civilians.

Ban called on Sudan and Chad to resolve their differences by diplomatic means.(dpa)