Amhara regional government has confirmed the fighting as all security forces are working to calm the situation.
Witnesses say hundreds of Eritrean vehicles left Shire, a development top US diplomat Blinken commends in phone call with Ethiopian PM Abiy Ahmed.
Ethiopian army says Amhara special forces pulled out from Shire following Tigray rebels' surrender of heavy weapons to government soldiers.
Weapon handover takes place in Agulae town, around 30 km northeast of regional capital Mekelle — part of wider November 2 ceasefire deal.
Hundreds of officers enter Mekelle to secure vital installations, part of last month's peace deal, while three African generals assigned to lead monitoring team and envoys from almost three dozen countries also visit the war-torn region's main city.
Passengers drop to their knees and kiss tarmac upon arrival in Tigray capital of Mekelle as Ethiopian Airlines resumes flights to the region where two years of war killed hundreds of thousands of people.
The team will oversee the implementation of last month's peace agreement with Tigray's rebels in the first visit by a high-level federal delegation to the region in two years.
A representative from each side of the conflict, as well as delegates from the African Union and an East African bloc, will form a joint committee to safeguard the peace deal signed in November.
Commander-in-chief of the Tigray rebel forces says 65 percent of his forces "disengaged", a key provision of a ceasefire agreement signed early last month to end the two-year conflict.
UN Secretary General Antonio Guterres says the conflict in Ethiopia has seen more casualties than the war in Ukraine.
Trucks with tonnes of medical supplies and equipment arrive in Mekelle city, following signing of peace agreement by government and rebels in Pretoria and Nairobi, says International Committee of the Red Cross.
The deal will facilitate humanitarian access, provide security guarantees to aid workers, ensure the protection of civilians and establish a joint committee to oversee implementation, mediators say.
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