Peru and Ecuador closed in on a cease-fire agreement in their jungle border war Thursday, while war fever raged unabated in both countries.

New clashes were reported Wednesday in the Cenepa River region, on the eastern edge of the Andes, where fighting broke out last week. Ecuador said Peruvian troops attacked two of its positions. Peru sent doctors and nurses to the border in preparation for battle casualties.Ecuador accepted Peruvian President Alberto Fujimoro's proposal for a cease-fire at talks that ended early Thursday, Julio Freyre, an adviser to the Argentine ambassador, told The Associated Press.

Fujimori's proposal includes establishing a demilitarized zone along the border and deploying independent observers.

"We have not yet reached a conclusion because Peru has been holding out on the details," Freyre said. "The Ecuadoreans agreed rather quickly to Fujimori's cease fire."

Talks between the two countries were to resume later Thursday in Rio de Janeiro, Brazil. The talks also involve representatives of the United States, Chile, Argentina and Brazil, guarantors of a 1942 border agreement between Ecuador and Peru.

The two countries accused each other of starting the fighting by crossing into its territory.

President Sixto Duran-Ballen of Ecuador proposed a cease-fire on Tuesday.

Duran-Ballen arrived Wednesday in Venezuela for a previously planned summit of six South American nations, saying Ecuador was "not going to back down one single centimeter."

Fujimori reportedly canceled plans to attend the summit.

Despite talk of a cease-fire, there were skirmishes Wednesday in the disputed region. The Ecuadorean military said Peru was "widening its area of operations" and that fighting spread to a post that had not previously been attacked.

"They have reinitiated land and air attacks," a military statement said.

Following a meeting with Fujimori on Tuesday, Peruvian newspapers reported Ecuador's troops still held two positions on Peruvian soil. Fujimori told the newspapers that soldiers were engaged in hand-to-hand combat in jungle so dense that helicopter attacks were impossible because targets were not visible.

Peru's Channel 4 television reported Wednesday night that 40 Ecuadoreans and 10 Peruvians had been killed in fighting.