The rebel leader in the east of the Democratic Republic of Congo wants peace talks and has agreed to set up a body that would monitor a ceasefire, the UN special envoy in the region said Sunday.

Rebel leader general Laurent `Nkunda reaffirms that he believes in a ceasefire being implemented and respected by both sides,` former Nigerian president Olusegun Obasanjo said in Goma, capital of Nord-Kivu province, after meeting Nkunda.

But Nkunda appeared to rule out the possibility that the UN mission in Congo (MONUC) might be part of the tripartite committee that would monitor a ceasefire.

Two of the members would be representatives of the Nkunda`s rebel CNDP and of the government, Obasanjo said.

`That third group, I thought it would be MONUC, but he objected to MONUC as an institution, he doesn`t object to an individual,` Obasanjo said.

`He accepts the UN special envoy as a mediator between his side and the government side,` he added.

`He wants the government to accept responsibility for a ceasefire by what he called government allies. I said, `You cannot accept responsibility for the action of your allies. We should go for what I suggested: a tripartite committee on verification on ceasefire violations.` He agreed to that`.

Nkunda`s CNDP rebels claim that government forces are being aided by Hutu rebels and local militiamen.

The two hour meeting took place in rebel-held territory at Jomba, about 80 kilometres (50 miles) northeast of Goma.

Nkunda said he was willing to negotiate a ceasefire with the government and said his forces were respecting a ceasefire unilaterally announced on October 29. Clashes have however broken out despite the ceasefire.

`He agreed to maintaining corridors for addressing the humanitarian crisis but, he said, `subject to the government removing road-blocks`,` Obasanjo reported.

Nkunda said after his meeting with Obasanjo: `Today is a great day for us because we were losing many men and now we have a message of peace. We should work with this mission.`

Obasanjo said after the talks that `I know now what he wants. I know that a ceasefire is like dancing the tango: It cannot be done by one only.`

Asked about a possible meeting between Nkunda and Congolese president Joseph Kabila, Obasanjo replied: `Not now. I expect exploratory discussions, formal discussions.`

Rebels and government forces clashed for several hours early Sunday about 20 kilometres (12 miles) southeast of Rwindi, near the strategic town of Kanyabayonga in Nord-Kivu, MONUC said.