Hundreds of Ethiopian troops in armoured vehicles have entered the central Somali town of Baidoa, home of the country's transitional government.
Residents said Ethiopian troops arrived on Thursday afternoon and set up a camp near the president's home there.
A spokesman for the transitional federal government denied that any Ethiopian soliders were in the town and maintained the claims were part of an Islamist plot to launch an attack.
"It is absolutely false," Abdirahman Nur Mohamed Dinari told AFP news agency. "Every time the Islamists want to attack, they start propagating rumours and manufacturing lies."
A top Islamic leader Sheikh Sharif Sheikh Ahmed responded to the reports saying: "We will declare jihad if the Ethiopian government refuses to withdraw their troops from Somalia."
Berhan Hailu, the Ethiopian minister of information, told Reuters in Addis Ababa on Wednesday: "We will use all means at our disposal to crush the Islamist group if they attempt to attack Baidoa, the seat of the transitional federal government."
Forces from the Supreme Council of the Islamic Courts moved to a town near Baidoa on Wednesday, causing fears of further conflict.
Bookmarks