Doctors on the scene said at least 60 people were killed and more than 150 wounded, with thousands more fleeing their homes to escape the violence that spread to new parts of the capital.

Some civilians escaped carrying small children on their backs as they ran to avoid the crossfire of bullets and stray rockets or shells. Schools were shut and public transport suspended as rival gangs set up roadblocks.

Fighters from both sides moved armed trucks deeper into the city to reinforce their positions early today. Militias from the Islamic Courts Union entered the southern and eastern parts of the capital and captured a strategic road junction in the city centre.

They also secured the Sahafi Hotel, a historic building owned by a member of the secular faction, the Alliance for the Restoration of Peace and Counterterrorism.

Locals told reporters it was the first time since 1992 that battles had spilled into different parts of the city within the same day.

The Islamic militiamen have alleged links to al-Qaeda and accuse the secular fighters of working with the American CIA – a charge the US refuses to comment on.

The Islamist group has cast itself as a force capable of restoring order after years of clan warfare that followed the overthrow of dictator Mohamed Siad Barre in 1991.

A UN-backed government based in the central city of Baidoa, 155 miles northwest of Mogadishu, has been unable to assert its authority on the country and Islamic leaders reject the administration because it is not based on Islam.

Yesterday, Mwai Kibaki, the Kenyan President, urged the US to support Somalia in restoring control. "(The US) should also provide financial assistance to Somalia as it moves towards reinstating other essential structures of government including the judiciary, army, police and immigration authorities," his statement said.

Lord David Triesman, Britain’s Minister for Africa, condemned the fresh outbreak of fighting. "The recent fighting in Mogadishu, which has now resulted in over 150 deaths, undermines international efforts to restore peace and stability in Somalia," he said in a Foreign Office statement.

"The UK calls on all parties immediately to cease violence and settle any differences at the negotiating table."

This latest clash follows fighting earlier in the month in battles that were confined to northern Mogadishu. The two sides then signed a ceasefire but that fell apart in renewed battles on Wednesday.

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