Thailand and Cambodia will enter into an unconditional ceasefire starting at midnight on Monday, Malaysia’s Prime Minister Anwar Ibrahim announced.

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

At least 12 have been killed in violent tensions along the disputed border separating Thailand and Cambodia. This follows a flare-up in May in which troops exchanged fire.