US working on a 60-day truce to end war in Lebanon, sources say

US mediators are working on a proposal to halt hostilities between Israel and Lebanese armed group Hezbollah, starting with a 60-day ceasefire, two sources said on Wednesday, but Israel pressed its offensive, ordering residents to evacuate Lebanon's eastern city of Baalbek.

The sources — a person briefed on the talks and a senior diplomat working on Lebanon — told Reuters the two-month period would be used to finalise full implementation of United Nations Security Council Resolution 1701, adopted in 2006 to keep southern Lebanon free of arms outside state control.

The latest effort comes as Israel's operation against Iran-backed Hezbollah in Lebanon continues to expand. Its army on Wednesday issued a first evacuation order for Baalbek, where tens of thousands of mostly Shia Muslim Lebanese, including many who had fled other areas, were residing.

Such notices are usually followed by bombardment, and governor Bachir Khodr called on residents to evacuate to the north.

Bilal Raad, regional head of the Lebanese civil defence, said the largely volunteer force had been calling on residents to leave via megaphones after receiving phone calls from someone identifying themselves as being from the Israeli military.

"People are all over each other, the whole city is in a panic trying to figure out where to go, there's a huge traffic jam," he said.

Some of the areas they are fleeing to are already full of displaced people.

Antoine Habchi, a lawmaker representing Christian-majority Deir Al Ahmar to the northwest of Baalbek, said more than 10,000 people were already sheltering in homes, schools and churches before Wednesday's evacuation order.

"We welcome everyone, of course, but we need immediate government help so that these people don't stay out in the cold," he told Reuters.

For a third straight day, Hezbollah reported intense fighting with Israeli forces in or around the southern town of Khiyam — the deepest Israel's troops have been reported to have penetrated into Lebanon since fighting began.

Israeli strikes on south Lebanon's Sarafand killed at least 10 people on Tuesday — most of them women and children — while a separate strike on the port city of Sidon killed at least five people and injured 37, Lebanese authorities said.

Resolution 1701 has been the cornerstone of talks to end the last year of fighting between Israel and Hezbollah, which erupted in parallel with the war in Gaza and has dramatically escalated over the last five weeks.

"We'd like to reiterate that we seek a diplomatic resolution that fully implements 1701 and gets both Israeli and Lebanese citizens back to their homes on both sides of the border," said Sama Habib, spokesperson at the US embassy in Beirut, when asked about the reported proposal.

US presidential envoy Amos Hochstein, who is working on the new ceasefire proposal, told reporters in Beirut earlier this month that better mechanisms for enforcement were needed as neither Israel nor Lebanon had fully implemented the resolution.

Israeli and US officials believe that Hezbollah is finally willing to disconnect itself from Hamas in Gaza having taken major blows, including the killing of its leader Hassan Nasrallah, the Axios report said.