UN special envoy to Ethiopia and Eritrea Loiyd Axworthy Thursday in Addis Ababa held discussion with Ethiopian Prime Minister Meles Zenawi on the Ethiopia-Eritrea peace process, which is currently suffering a setback despite international efforts.

Axworthy, the Canadian peace mediator to the Ethio-Eritrean border dispute told reporters here that he has started his discussion with Meles regarding the two countries peace process.

Axworthy, who refused to comment in detail about the talks with Meles, saying that he came to Ethiopia to hold discussion about the current status of the Ethio-Eritrean peace process with the concerned officials and other UN bodies.

This was the third time for Axworthy to come to Ethiopia for talks about the peace process between the two neighboring countries.

The mediator, appointed by the Secretary General Kofi Annan a year ago to deal with border demarcation issue, is still unable to hold talks with Eritrean leader.

However source here disclosed that Axworthy is likely to travel to Eritrea for the same purpose.

Axworthy's visit to Addis Ababa came after the Ethiopian government has introduced a five-point peace proposals to end its differences with Eritrea. But Eritrea repeatedly rejected Ethiopia's offer, saying that it has nothing good to end the two countries' differences.

Eritrea has urged Ethiopia to pull out its troops from all areas in accordance with the ruling by the Ethio-Eritrea Boundary Commission made on April 13, 2003 in the Hague.

But Ethiopia still demands Eritrea to sit for dialogue over the implementation of the boundary decision, which awarded Ethiopian claimed territory Badme to Eritrea.