Both the government and Tamilnet admit that there has been heavy fighting in the north

A military spokesman said a hundred and twenty rebels had been killed, and more than twenty soldiers also died when the army carried out multiple attacks near the rebel stronghold of Kilinochchi, in the Jaffna peninsula.

Pro-LTTE Tamilnet said the fighting lasted several hours but did not comment on the government statement.

More than 40 soldiers were killed and at least 120 soldiers sustained injuries in fighting on Tuesday, it said.

There have been no independent accounts on the claims by both parties.

Kilinochchi is a vital target in the government's efforts to defeat the rebels and end their decades-long fight for a separate Tamil state.