Thailand said late Saturday it agrees in principle to entering a ceasefire with Cambodia and beginning a "bilateral dialogue" aimed at ending the nations' deadliest fighting in more than a decade.

Thailand and Cambodia fought their bloodiest military clashes in more than a decade, with at least 12 people killed over a disputed border zone.

The two nations have been locked in a decades-long conflict over their contested border. Tensions in disputed territories soured earlier this year.

The 900-year-old Preah Vihear temple, a Hindu shrine dedicated to Lord Shiva, is perched on a 525 metre cliff in Cambodia's Dangrek mountains.

Thailand and Cambodia exchanged heavy artillery fire for a second day on Friday as fighting intensified and spread, while Cambodia's leader said Thailand had agreed to a Malaysian ceasefire proposal but then backed down.

Acting Prime Minister Wechayachai told reporters that the severity of the clashes was escalating, endangering civilians, and Thailand was committed to defending its territory and sovereignty

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