Ethiopian police say they have seized thousands of rounds of ammunition sent by Eritrea to a violent armed rebel group, stoking fears of renewed armed conflict.

Eritrea has denied the allegation and accused Ethiopia of floating false flags to justify the war that it has been itching to unleash for two long years.

It comes at a volatile moment for the relationship between the Horn of Africa neighbours, which share a fractious and violent history.

On Wednesday, Ethiopian police said in a Facebook statement that they had seized more than 56,000 rounds of ammunition in the Amhara region intended to arm the Fano rebels, and had arrested two suspects.

Relations between the two countries have frequently been strained. After a decades-long battle for independence, Eritrea officially seceded from Ethiopia in 1993, leaving it landlocked. Five years later, a border war erupted in which more than 100,000 people died.

Following an historic declaration to normalise relations in 2018, Eritrean troops fought in support of the Ethiopian government during the civil war that broke out in the Tigray region. However, tensions have resurfaced, particularly surrounding access to the Red Sea, with Ethiopian Prime Minister Abiy Ahmed expressing that Ethiopia's need for access to the sea is an existential issue. As military and political tensions escalate, the region remains on edge.