Kabul: Nato said yesterday its major offensive to crush a revitalised Taliban in southern Afghanistan is pushing the guerrillas into a corner as heavy fighting continues.

"We are closing the circle on the Taliban we have got the Taliban in a bit of a trap," Nato spokesman Major Quentin Innes said.

Last weekend Nato launched Operation Medusa, its biggest ground offensive against an increasingly active Taliban, in Kandahar province, the hardline group's spiritual heartland.

The operation is focused on Panjwai district, near the capital, Kandahar city, and is being supported by air strikes.

Panjwai has been the scene of a series of operations by Afghan and foreign forces this year. Several thousand civilians have fled in the face of previous battles and residents say many have died in the latest fighting.

Nato says it has killed more than 200 guerrillas, a claim the Taliban disputes.