Sudan says it has cut off diplomatic relations with Chad, blaming it for helping rebels from Darfur to launch an attack on Sudan's capital, Khartoum.
Both Chad and Jem rebels deny working together to launch the assault on the Khartoum suburb of Omdurman, which the rebels say they have taken control of.
The government said the rebel advance, the closest they have come to Khartoum, had been defeated.
An overnight curfew imposed on Khartoum has been lifted, but not in Omdurman.
Sudanese President Omar al-Bashir made the announcement that his country was breaking off diplomatic ties with Chad on state television.
"These forces [behind the Omdurman attack] are all basically Chadian forces supported and prepared by Chad and they moved from Chad under the leadership of [rebel chief] Khalil Ibrahim," President Bashir said in his televised statement.
He added his country reserved the right to retaliate against Chad.
Sudan has offered a reward of $125,000 (£64,000) for Mr Ibrahim's capture and information that leads to his arrest, Sudan TV reported.
Both Chad and Jem rebels deny working together to launch the assault on the Khartoum suburb of Omdurman, which the rebels say they have taken control of.
The government said the rebel advance, the closest they have come to Khartoum, had been defeated.
An overnight curfew imposed on Khartoum has been lifted, but not in Omdurman.
Sudanese President Omar al-Bashir made the announcement that his country was breaking off diplomatic ties with Chad on state television.
"These forces [behind the Omdurman attack] are all basically Chadian forces supported and prepared by Chad and they moved from Chad under the leadership of [rebel chief] Khalil Ibrahim," President Bashir said in his televised statement.
He added his country reserved the right to retaliate against Chad.
Sudan has offered a reward of $125,000 (£64,000) for Mr Ibrahim's capture and information that leads to his arrest, Sudan TV reported.
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