Lebanon agreed to negotiate an end to a deadly standoff between the Lebanese troops and an Islamist militia holed up in a northern refugee camp, local Ya Libnan news website reported on Sunday evening.

The Lebanese army demand that fighters of Fatah al-Islam surrender and be handed over for prosecution for attacking Lebanese troops last week, according to the news website.

The main Palestinian factions in Lebanon including the Fatah party of Palestinian president Mahmud Abbas, the Islamic Resistance Movement (Hamas) and the Democratic Front for the Liberation of Palestine (DFLP) are commissioned for the negotiations, said the website.

The Lebanese army has besieged Fatah al-Islam, an al-Qaida-linked group made up of fighters from across the region since Saturday.

Walid Jumblatt, a senior leader of the pro-government majority voiced the army's position when he demanded the handing over of the Fatah al-Islam Islamist militants, who have been battling the army at the Nahr al-Bared camp for a week in Lebanon's worst internal violence since the 1975-1990 civil war.

"Nobody has talked about a military solution, but we want the criminals to give themselves up."

For the last two days, situation around the camp remained quiet during the day, as a truce started from Tuesday night continues to hold, but sporadic fightings were reported for the two consecutive nights of Saturday and Sunday, according to local media.

Some residents fled the camp said they had dodged sniper fire from Fatah al-Islam, which is targeting fleeing civilians to keep the camp's population as human shields, according to the Ya Libnan website.

Under a 38-year-old agreement, the Lebanese army do not enter the 12 Palestinian refugee camps in the country.

Fighting between the Lebanese military and Fatah al-Islam, reportedly linked to al-Qaida, which started last Sunday, had left scores dead, destroyed houses and sent over 20,000 of the camp 's 31,000 residents fleeing their homes.