The fighting threatened the army`s defensive lines around government-held areas of western Aleppo.
Observatory director Rami Abdulrahman said dozens had been killed on both sides in what he described as the most intense battle in the area in a year. Government forces were reinforced by allies from Lebanon`s Hezbollah, he said.
The rebel fighter said about 40 government fighters had been killed, while rebel losses stood at 10 dead. The military source denied heavy casualties in army ranks, but said dozens of civilians and many rebels had been killed.
The rebel and a second opposition fighter said insurgents had at one point captured a strategic location known as Family House, but later lost it after the government side brought in reinforcements.
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