MILITIAMEN led by a commander calling himself "Gen Saddam Hussein" fought with forces loyal to Liberia's strongest warlord, Charles Taylor, for control of a key bridge in the capital, Monrovia, yesterday.
Mr Taylor, speaking on radio to dispel rumours that he had fled, vowed to clear ethnic Krahn fighters out of the city's main barracks, the Barclay Training Cenare (BTC).
However, aides and peacekeepers said warlord Alhaji Kromah, like Mr Taylor a vice chairman in the interim government and his ally in the current fighting, had left Monrovia for his base in northern Liberia as rival militia forces edged close to his home.
Mr Taylor said there would be no ceasefire until the Krahn leader, Mr Roosevelt Johnson, surrendered.
Krahn fighters led by Hussein fought Mr Taylor's forces on the Johnson Street Bridge, connecting Bushrod Island to the city centre.
Battles in the city first began on April 6th after the ruling council of state tried to arrest Mr Johnson for murder. A 10 day truce collapsed on Monday when Mr Taylor went to the presidential complex with militiamen and was forced to flee with the head of state, Mr Wilton Sankawulo, under a hail of gunfire.
The current fighting is the first in the city centre since 1990, and has been accompanied by the worst looting Monrovia has seen.
Meanwhile three US warships moved within sight of Monrovia after US marines returned fire during battles in front of the US embassy on Tuesday, killing three Liberians and wounding one.
West African leaders are due to meet in Accra next Wednesday to discuss what can be salvaged from a peace accord signed in Abuja last August, which set a timetable for disarmament and elections within a year.
Mr Taylor said in his radio address he would attend the summit.