(Adds EU aid chief comments)

MOGADISHU, Dec 20 (Reuters) - Somali Islamist leader Sheikh Hassan Dahir Aweys said on Wednesday war had not started in the volatile Horn of Africa nation and agreed to attend peace talks with the rival interim government.

"The war has not started. This is a small incident," he told reporters, referring to two days of clashes between Islamist fighters and troops defending the government's only stronghold.

Aweys was flanked by visiting EU aid chief Louis Michel, on a diplomatic push to get both sides back to the negotiating table.

Michel said the Somalia Islamic Courts Council (SICC) had agreed to attend a fourth round of Arab-League mediated peace talks in Khartoum.

"They have accepted our proposal," he said, calling it a "breakthrough".

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