Kofi Annan (file photo)

U.N. Secretary General Kofi Annan says the situation between Ethiopia and Eritrea has reached a "dangerous stalemate" and suggested possible changes to the U.N. mission in the region.

Mr. Annan presented the U.N. Security Council with six options for the U.N. mission, ranging from maintaining the status quo to a full withdrawal.

Other options include moving the U.N. mission headquarters from Eritrea to Ethiopia and downgrading the operation to either an observer or liaison effort.

Mr. Annan did not recommend any particular option and said none offered an ideal way out of the stalemate.

Both Eritrea and Ethiopia have increased troops along their shared border. Eritrea has also imposed restrictions on U.N. peacekeepers in its territory. The Security Council has threatened sanctions against both countries if the situation is not reversed.

Some information for this report provided by AFP and Reuters.