"The Islamists' spokesman Shahin Shahin made known an offer to give themselves up to a Palestinian committee, but this was rejected by the military," said Mohammed Hajj, a spokesman for clerics trying to broker an and to the deadly fighting at Nahr al-Bared.

"The army is demanding their unconditional surrender, that they hand over their weapons, and the disbandment of Fatah al-Islam," the militant group that has been fighting since May 20, Hajj added.

A military spokesman confirmed this to AFP.

"Fatah al-Islam is in no position to demand conditions," he said. "They have no other option but to give themselves up to the army and be brought to justice.

"However we are ready to guarantee that their families will be able to leave peacefully. Let them suggest a mechanism for this and it will go ahead," the spokesman added.

No more than an estimated 60 of the camp's 31,000-strong registered population remains inside Nahr al-Bared, and these are thought to be the wives and children of Islamist fighters.

Soldiers continued bombarding the camp on Sunday with intermittent artillery fire, targeting underground Fatah al-Islam positions, an AFP reporter said. The extremists still control an area of about 15,000 square metres (161,400 square feet).