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reporters in Bangkok. Thailand also declared martial law in eight of its districts bordering Cambodia.

Fighting resumed in three areas around 4:00 am yesterday, the Thai army said, with Cambodian forces firing heavy weapons, field artillery, and BM-21 rocket systems, and Thai troops responding “with appropriate supporting fire”.

But in the afternoon, foreign ministry spokesman Nikorndej Balankura told AFP there were signs the fighting was easing off, and said Thailand was open to talks, possibly aided by Malaysia.

“We are ready, if Cambodia would like to settle this matter via diplomatic channels, bilaterally, or even through Malaysia, we are ready to do that. But so far we have not had any response,” Nikorndej told AFP.

Malaysia currently holds the chair of the Association of Southeast Asian Nations (Asean) regional bloc, of which Thailand and Cambodia are both members.

Cambodia has stayed tight-lipped about its casualty numbers, but AFP journalists saw four wounded soldiers and three civilians receiving treatment at a hospital in Oddar Meanchey.

The soldiers said they were injured during the fighting on Thursday, while the civilians said they were hit by shrapnel.

In the Cambodian town of Samraong, 20 kilometres (12 miles) from the border, AFP journalists saw families speeding away in vehicles with their children and belongings as gunfire erupted.

“I live very close to the border. We are scared,” Pro Bak, 41, told AFP. He was taking his wife and children to a Buddhist temple to seek refuge.

The fighting marks a dramatic escalation in a long-running dispute between the neighbours -- both popular destinations for millions of foreign tourists -- over their shared 800-kilometre (500-mile) frontier.

Dozens of kilometres in several areas are contested and fighting broke out between 2008 and 2011, leaving at least 28 people dead and tens of thousands displaced.