France to leave Mali from March

One of the militant groups, the Movement for Oneness and Jihad in West Africa (MUJAO), said it had attacked military positions in Gao, the largest city in the north -- a claim denied by west African forces.

A Malian security source confirmed the Tuareg group was in the town 80 kilometres (50 miles) from the Niger border, which Nigerien troops had taken from militant occupiers but then left as they continued their advance.

Tuaregs working against 'terrorists'

The MNLA -- which originally fought alongside the militants but then fell out with them -- earlier said it was working with France against "terrorists" in the region.

"In the framework of anti-terrorist coordination put in place with French forces," the MNLA will provide intelligence on "top terrorist officials" they have arrested, a spokesman said in Burkina Faso.

The group said it was responsible for Sunday's arrest of two militant leaders, Mohamed Moussa Ag Mohamed, the number three in Ansar Dine (Defenders of the Faith), and Oumeini Ould Baba Akhmed of MUJAO.

The MNLA launched a rebellion a year ago fighting for an independent state for the desert nomad Tuareg people, who have long felt marginalised by Mali's government.

But, after being chased from their strongholds by the militants, they have voiced a willingness to negotiate since France intervened.

With France eager to shed some of the military burden and 8,000 pledged African troops being deployed at a slow trickle, observers have said Paris is likely examining whether the MNLA is a possible partner.

Le Drian said France had "functional relations" with the group in Kidal but that fighting terrorists alongside them was "not our objective."

In France, President Francois Hollande urged Europe to fight drug trafficking in West Africa, telling the European Parliament that "terrorism feeds on narcotics trafficking."

Analysts say the groups that seized northern Mali depend on drug trafficking, smuggling and kidnapping to arm themselves.

And in Brussels, global players including the United Nations and African Union met to carve out plans for Mali's future once the 26-day-old offensive draws to an end, urging elections -- which Mali's interim government has promised by July 31 -- and a national dialogue.

 AFP