West African defence chiefs have agreed on a small military force to be deployed in Ivory Coast, to replace French troops currently supervising a delicate truce agreed three weeks ago.

But Nigeria, the regional powerhouse, has decided not to send troops for the time being.

Ivory Coast has been split in two since an army rebellion in September.

There is still a big problem of confidence between the two sides

Togolese official

Meanwhile, the rebels and government negotiators from the Ivory Coast are locked in another day of talks in the Togolese capital, Lome, attempting to resolve seven weeks of fighting and political deadlock.

However, there is little sign that mediators have succeeded in bringing either side closer to a compromise, and both sides are reported to be continuing to rearm.

Force

The first of the 1,264 troops from the West African force are due to arrive by the end of next week.

Five West African countries will participate - Benin, Ghana, Niger, Senegal and Togo - but no nation has been announced to lead the force.

A spokesman for the West African regional grouping, Ecowas, said he was disappointed by the Nigerian decision, but hoped it would change its mind.

"What we are working on is to get Nigeria participating in this force because we cannot imagine an African contingent without Nigeria," deputy Ecowas executive secretary Cheick Oumar Diarra told AFP news agency.

The force will be paid for by Britain, France, Canada, Germany and the Netherlands.

Togo talks

Togolese President Gnassingbe Eyadema, who is mediating the talks in Lome, is meeting rebel and government leaders one on one on Thursday.

Smiles, but no sign of compromise on either side

A joint meeting is possible later, says Mohammed Ibn Chambas, the Ecowas executive secretary.

"The two sides are still committed to working out a settlement," he told AP news agency.

However, despite agreeing to stop fighting, neither side seems ready to compromise on the key issues.

The rebels demand that President Laurent Gbagbo resign and call new elections; the government wants the rebels to lay down their weapons.

Mr Chambas admitted the talks could not go on indefinitely:

"It's better to stay here for another week or two, than to suddenly pack up. What's the alternative?"

Hundreds of people were killed in fighting and thousands made homeless before the truce.

West African leaders are desperate to put a halt to a conflict that threatens to destabilize the region.

With cocoa and cotton ready for harvest in Ivory Coast - the economic powerhouse of the region, and the world's largest cocoa producer - every lapse in the peace process creates more economic hardship.

Fears of a renewed conflict sent international cocoa prices up over 4% on Wednesday - reversing a steady decline since the ceasefire.