A humanitarian ceasefire will begin at 8 a.m. local time (12:00 a.m. EDT), the governments of the United States of America, the Republic of Armenia, and the Republic of Azerbaijan said in a joint statement.

"Why can Azerbaijani and Armenian people live together in Georgia, Russia, Ukraine, and other countries but not in Nagorno Karabakh?" he added in a Fox News interview that was reprinted by the state Azertag News Agency.

But new fighting erupted on Sunday between Azerbaijan and Armenian forces as both sides blamed each other for blocking a peaceful settlement to the conflict.

In its own statement, OSCE Minsk Group, which was created in 1992 by the Conference on Security and Cooperation in Europe to negotiate a resolution over Nagorno-Karabakh, said its co-chairs, Igor Popov of the Russian Federation, Stephane Visconti of France and Andrew Schofer of the US, agreed with the foreign ministers of Armenia and Azerbaijan to meet again in Geneva on October 29 to further discuss the parameters of monitoring the ceasefire and a timeline for a comprehensive, long-term solution.

A view shows aftermath of recent shelling during the ongoing fighting between Armenia and Azerbaijan over the breakaway Nagorno-Karabakh region, in the disputed region's main city of Stepanakert on October 4, 2020. Azerbaijan's Defense Ministry, in turn, alleged that Armenian forces shelled the Terter, Agdam and Aghjabedi regions of Azerbaijan.

Fighting between Armenia and Azerbaijan over Nagorno-Karabakh, also called Upper Karabakh, began September 27. Azerbaijan says 65 Azeri civilians have been killed and 298 wounded, but has not disclosed its military casualties.

Putin said last week that Moscow's information showed the death toll neared 5,000, which is significantly higher than what both sides report. On Friday, U.S. Secretary of State Mike Pompeo hosted the Armenian and Azerbaijan foreign ministers for separate talks, but the fighting has continued unabated.

Relations between the two former Soviet republics have been tense since 1991 when the Armenian military occupied the region, an internationally recognized territory of Azerbaijan.

"I am absolutely confident in the effectiveness of the peace negotiations but this also depends on the will of the Armenian side to take part in them", Azerbaijan's president said.

World powers want to prevent a wider war that draws in Turkey, which has voiced strong support for Azerbaijan, and Russian Federation, which has a defence pact with Armenia.

But Armenian Prime Minister Nikol Pashinyan said Wednesday he sees no possibility of a diplomatic solution at this stage of the conflict.

The Armenian troops in Qubadli withdrew with manpower and equipment losses, with numerous soldiers sent from the region of Tsaghkadzor in Armenia to Nagorno-Karabakh neutralised, it said. Ankara denies it has inflamed the conflict. Armenia has declared martial law and general mobilisation, while partial mobilisation and partial martial law have also been introduced in Azerbaijan.

Iran's Revolutionary Guard said on Sunday it deployed round forces to the border near the area of the conflict.

It did not elaborate about the location of the drill, but Turkey, Armenia and Azerbaijan have joint borders with Iran in the area.