Witnesses in Yemen say suspected Al-Qaida militants have taken over the coastal city of Zinjibar.
Residents say hundreds of militants gained control of Zinjibar on Friday.
There are reports of fighting lasting into Saturday, resulting in casualties.
Zinjibar is the capital of Abyan province in southern Yemen, one of the areas considered a stronghold of al-Qaida.
In another development, a mediator said Saturday Yemen's president and the country's most powerful tribal leader have agreed to end five days of urban gun battles that threatened to push the country into civil war. More than 100 people have died in the clashes.
The battles pitted President Ali Abdullah Saleh's security forces against those of Sheikh Sadeq al-Ahmar, the leader of the Hashid tribe. The battles have become the most serious threat to President Saleh's grasp on power after three months of opposition protests.
The two sides agreed to withdraw their forces from the Hassaba neighborhood in the capital, Sana'a, starting Sunday.
The tribal leader, a former ally of Saleh, has joined the protesters who want the Yemeni president to step down after 32 years of authoritarian rule.
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