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Video U.S. soldiers reflect on wounds of war An uncertain future for Iraq as U.S. leaves Batista bets on Brazil Follow Reuters Facebook Twitter RSS YouTube Read Senate passes payroll tax cut and spending bill 4:38pm EST Rapper shot to death in Atlanta 4:15pm EST South Carolina has first human rabies case in 50 years 16 Dec 2011 Special report: the billionaire from Brazil | 9:11am EST Time short for S&P to end 2011 higher 12:00pm EST Discussed 249 Ron Paul gains ground, further stirring Republicans 135 Insight: The day Europe lost patience with Britain 126 Ron Paul strongly defends anti-war policies Watched Philippines counts storm dead 3:13am EST 'Barefoot Bandit' brought to book Fri, Dec 16 2011 Dozens die in Philippines storm 2:10am EST Warring Yemen forces quit Sanaa, 2 troops die in south Tweet Share this Email Print Related News U.N. tries to bolster Yemen peace, Qaeda inmates in jail Mon, Dec 12 2011 Al Qaeda members flee in south Yemen jailbreak: officials Mon, Dec 12 2011 Yemen leader will choose war, not quit: Nobel winner Sat, Dec 10 2011 New Yemen cabinet meets; Nobel winner says Saleh wants war Sat, Dec 10 2011 Analysis: New Yemeni government hostage to military standoff Thu, Dec 8 2011 Analysis & Opinion Voices from al-Azhar on Egypt, Islam and elections Drum circle of the war hawks Related Topics World » Related Video Military withdraws from Yemeni capital 11:20am EST Yemenis protest Saleh amnesty Anti-government protesters shout slogans during a march to demand the ouster of the whole regime of Yemen's outgoing President Ali Abdullah Saleh in the southern city of Taiz December 17, 2011. Credit: Reuters/Mohamed al-Sayaghi SANAA | Sat Dec 17, 2011 12:16pm EST SANAA (Reuters) - Forces loyal to outgoing President Ali Abdullah Saleh and his opponents withdrew from their positions in the capital Sanaa on Saturday, witnesses and officials said, in a further sign a peace deal signed last month was being implemented. In southern Yemen, two government soldiers were killed in a clash with Islamist militants, medical sources said, as insurgents linked to al Qaeda challenged the peace accord aimed at pulling the country away from civil war. Witnesses said a military committee set up under the Gulf peace deal signed in Saudi Arabia last month oversaw the dismantling of military positions that have divided the capital since protests against Saleh's 33-year rule began in January. They said armored bulldozers removed barricades from Sixty Street which split the capital into a dissident-controlled north and Saleh-ruled south under the military's supervision. Military trucks were seen carrying armoured vehicles from the base of a brigade led by dissident General Ali Mohsen outside Sanaa. A spokesman for the committee told the state news agency Saba that the first day of dismantling military positions had gone smoothly. On the eastern side of the city, Republican Guard troops led by Saleh's son Ahmed also abandoned their positions. "But tribal fighters from the al-Ahmar tribe, are still there, surrounded by paramilitary Central Security Forces," one resident said. Saleh's forces had fought pitched battles with fighters loyal to tribal leader Sadeq al-Ahmar in the al-Hasaba and Soufan districts of Sanaa, where fresh explosions were heard early on Saturday. There were no reports of casualties. Since Saleh handed over his powers to his deputy, Abd-Rabbu Mansour Hadi, under the Gulf peace accord, a new Yemeni government headed by an opposition leader has been formed and a early presidential election is set to be held in February. Hadi has also formed a military committee which oversaw a ceasefire in the flashpoint city of Taiz and supervised the withdrawal of rebel fighters and government forces. CONTINUED FIGHTING IN SOUTH In the southern city of Aden, sources at a military hospital said two soldiers were killed and six wounded near Zinjibar, the capital of Abyan province, where Islamist militants have exploited the chaos caused by nearly 11 months of protests to seize swathes of territory. Apart from Islamist militants, the new government is facing challenges from a southern separatist movement and a Shi'ite Muslim rebellion in the north. Top oil exporter Saudi Arabia shares U.S. fears that more instability in Yemen could embolden the country's al Qaeda wing - seen by Washington as the group's most dangerous branch - in a country sitting next to oil shipping routes. European Union diplomats urged separatist leaders in Aden on Saturday to try to resolve their grievances in a national dialogue with the unity government in Sanaa. The EU ambassador in Sanaa said after talks with southern Yemeni separatist leaders in Aden that the bloc encourages all Yemenis to join a national dialogue to determine the future of the country. Separately, Abyan's governor said in a statement the fighting had made it impossible to open the main road to Aden, which has been closed for five months. (Reporting by Khaled Abdullah in Sanaa and Mohammed Mukhashaf in Aden; Writing by Sami Aboudi and Firouz Sedarat; Editing by Sophie Hares) World Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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