ADDIS ABABA, Jan 28 (Reuters) - Kenyan President Daniel arap Moi met Ethiopian Prime Minister Meles Zenawi in Addis Ababa on Thursday to try to avert a renewed border war between Ethiopia and Eritrea.

But there was no sign of a breakthrough in deadlocked efforts to mediate an end to the dispute, amid fears that fighting could soon resume after a seven-month lull.

Ethiopia continues to insist that Eritrea withdraw from the contested border territory it occupied in May last year, a position supported by the Organisation of African Unity (OAU), the United Nations and the United States.

But Eritrea has said it would not withdraw its troops unless an international monitoring force was deployed first.

After a heavy build-up of troops and artillery along the 1,000 km (600 mile) frontier, there is a sense in both capitals that a resumption of fighting is now almost inevitable.

``Prime Minister Meles stressed that the only guarantee for avoiding further hostilities and to reach a peaceful solution hinges on the full and urgent implementation of the OAU proposals,'' a joint communique issued after the meeting between Meles and Moi said.

Moi, who visited Asmara on Sunday to meet Eritrean President Isayas Afewerki, urged the Ethiopian government to maintain efforts to find a peaceful solution to the conflict.

``President Moi conveyed to the Ethiopian government the assurance and willingness of the government of Eritrea to negotiate a peaceful settlement to the border dispute,'' the communique said.

In Eritrea, presidential adviser Yermane Gebremeskel rejected reports that Eritrea was under pressure to accept the OAU proposals in full, and reiterated that it was still awaiting clarification on a number of issues. He was speaking after Afewerki returned from a trip to Europe on Thursday.

``Everywhere we went in Europe, they told us the OAU framework agreement is not a take it or leave it package,'' he said. ``We have asked for clarification on certain points, they (the European Union) understand it is an ongoing process.''

Hundreds of troops were killed in artillery battles on three fronts last year before fighting subsided with the onset of the rainy season in mid-June.

Moi and Meles also discussed security issues along their common border after recent militia skirmishes in the area.