Ethiopian troops and Somali government soldiers advanced toward Somalia's capital Mogadishu on Wednesday, preparing to seize control from their Islamist rivals.

The militias of the Council of Islamic Courts took over Mogadishu in June and went on to take much of southern Somalia. But already, there are signs within the capital that they may be losing support.

The Associated Press reported seeing some militia members slipping out of their uniforms for civilian clothing, while women have again started selling the stimulant qat -- a drug banned by the Islamists.

But there are still fears that the militias could continue their battle using guerrilla tactics.

"At the moment, the Ethiopian-supported side is pushing back the Islamists' group, but it could turn into an insurgent movement," Karin Von Hippel, a Somalia expert with the Center for Strategic and International Studies, told CTV Newsnet.

"It could turn into a longer term low-level struggle, which is something people are very concerned about."

Ethiopian troops earlier drove militias out of the town of Johar, about 90 kilometres north of the Islamist-held capital.

Former warlord Mohammed Dheere, who ruled the town before it was captured by the Council of Islamic Courts in June, led the Somali troops as they drove into the city, resident Abshir Ali Gabre told AP.

Government officials confirmed the capture of Jowhar as well as Balad, the last town before Mogadishu on the road leading from Jowhar.

The loss of Jowhar, a former Islamist stronghold, leaves the retreating UIC with little control of the coast.

The Islamists appeared to be heeding a call from their senior leader, Sheikh Sharif Ahmed, for forces to gather in the capital to prepare for a war against Ethiopia.

Hundreds of people had left Jowhar in anticipation of major fighting but others seemed resigned to the violence after suffering from drought and flooding over the last two years.

"We do not know where to escape, we are already suffering from floods, hunger and disease," Abdale Haji Ali told AP from Jowhar. "We are awaiting death."

The continuing fighting comes amid concerns the displacement could spark an aid crisis in a region already struggling with the aftermath of severe flooding.

The UN's World Food Programme has put off air drops into southern Somalia but the Red Cross says it has been able to keep up its cargo flights to its Somali partners.

On Sunday, Ethiopia sent fighter jets streaking deep into militia-held areas to help Somalia's UN-recognized government push back the Union of Islamic Courts, which held much of central and southern Somalia.

Ethiopia bombed the country's two main airports and helped government forces capture several villages.

On Tuesday, a U.S. State department spokesman for Washington signalled support for military operations against Somalia, saying Ethiopia has had "genuine security concerns" stemming from the rise of Islamist forces in its eastern neighbour.

Ethiopian Prime Minister Meles Zenawi said Tuesday that Ethiopian forces may soon conclude their offensive against their Islamist rivals that until recent days controlled most of the southern part of the country.

So far, the UN Security Council has taken no immediate action on a draft presidential statement circulated by Qatar, the Council's sole Arab member.

The draft is calling for a ceasefire and withdrawal of foreign forces, including Ethiopia's, from Somalia.

Some nations have objected to singling out Ethiopia, saying they are in Somalia at the request of the interim government while others have argued that a political agreement is needed before foreign forces can leave.

The council is expected to resume discussions later on Wednesday.

The AU, Arab League and east Africa's regional body IGAD were also due to hold talks in Addis Ababa later on Wednesday.

Years of political chaos

Somalia has not had an effective government since warlords ousted longtime dictator Mohamed Siad Barre in 1991, thrusting the country into anarchy.

Two years ago, the United Nations helped set up a central government for Somalia. But until the past week, it had little influence outside of its seat in the city of Baidoa.

Somalia, an impoverished Horn of Africa nation, was largely under the control of warlords until this past summer, when the Islamic militia movement seized control.

Experts fear the conflict in Somalia could spiral into an open war that engulfs the Horn of Africa.

It's unclear whether the central government can win the support of Somalis.

Many resent Ethiopia's intervention because the countries have a history of troubled relations over their disputed border.

The Islamists have depicted the conflict with Christian-led Ethiopia as a holy war against "crusaders," which taps into popular anti-Ethiopian sentiment stirred by decades of hostility between the two neighbouring nations.

Meanwhile, Ethiopia has portrayed the fighting as a war against al-Qaeda-linked terrorists.

Ethiopia's Meles said his goal is not to defeat the militias but severely damage their military power -- and allow both sides to return to peace talks.

"The rank and file of the Islamic Courts militia is not a threat to Ethiopia," he said Tuesday. "Once they return to their bases, we will leave them alone."

His troops will not enter Mogadishu, Meles said. Rather, Somali forces would encircle the city to contain the militias that are in command.

Ethiopia is expected to be wary of using warplanes to take the capital.

More then a decade ago, American forces backed by Black Hawk helicopters suffered a humiliating defeat in Mogadishu at the hands of militiamen.

In 1993, an angry mob dragged a corpse of a U.S. soldier through the streets of Mogadishu. The images were broadcast worldwide and became the subject of the book and movie "Black Hawk Down."

The resulting outrage at home prompted the U.S. to pull out of the African nation.

With files from The Associated Press