CAIRO, Oct 15 (Reuters) - Ethiopian Foreign Minister Seyoum Mesfin said in Cairo on Thursday that chances of settling a border dispute with Eritrea were slim.

``Relations between the two countries have not witnessed any improvement and chances of a peaceful settlement of the crisis are hazy,'' Seyoum told reporters after meeting Egyptian President Hosni Mubarak.

``We hope that the Organisation of African Unity will come up with proposals to resolve the issue next month as Ethiopia is committed to peace,'' he added.

Seyoum said he was carrying a message from Prime Minister Meles Zenawi to Mubarak, who tried and failed to end the row.

Hundreds of people were killed in a six-week long battle after the long-running border dispute between Ethiopia and Eritrea erupted into violence on May 6.

Although there have been no significant engagements since mid-June, both sides have used the lull to mass reinforcements of troops and artillery along the border.

Earlier this month, the Organisation of African Unity (OAU) suggested Eritrea withdraw its forces to positions held before May 6. A mediation round is scheduled for later this month.

Ethiopia has said the OAU initiative was the only guarantee for a negotiated solution to the dispute but Eritrea has rejected the proposal and called for international monitors to be deployed in disputed areas before any withdrawal takes place.