"Shelling is continuing in the city's suburbs," a spokesman for the Interior Ministry of South Ossetia (self-proclaimed republic on Georgian territory) told RIA Novosti on the telephone.
The city's northern part is coming under the fiercest fire from the Georgian village of Tamarasheni, according to the source.
South Ossetia's units are returning fire.
"Georgians are also firing from mortars and tank guns from the village of Nikozi," reported the Interior Ministry official.
The peacekeeping troops deployed in the conflict zone are remaining neutral and are taking no major steps, added the source.
There are 15 wounded people in the republican hospital, reported RIA Novosti.
"The wounded are coming up every minute. Many of them need to be operated on," Zhanita Kharebova, a resuscitator, told RIA Novosti on the phone.
The Interior Ministry and the hospital have no death toll data at the moment.
Georgia's Rustavi-2 TV channel reported earlier that three persons had been killed.
Georgian officials, among them Defence Minister Georgy Baramidze, Georgy Khaindrava, State Minister For Conflict Settlement, Prime Minister Zurab Zhvania, and Parliament Speaker Nino Burdzhanadze were conferring throughout last night, according to Rustavi-2.
