Heavy fighting between Houthi militants and Yemeni soldiers have taken place near the presidential palace in Sanaa with gunfire and explosions rocking the capital city, according to the latest reports.

Yemeni Prime Minister Khaled Bahah's convoy was also shot at as he departed from a meeting with President Abdrabbuh Mansour Hadi, reports the BBC, though no casualties are thought to have occurred.

Rocket propelled grenades, machine gunfire and mortar rounds were reportedly being fired near the presidential palace and by the home of Yemen's national security chief, in the biggest hostilities seen since Houthi gunmen overran Sanaa last year.

“This is a step towards a coup and it is targeting the state's legitimacy,” said Nadia Akkaf, the country's information minister.

Battles also erupted in the south of the city near another residence owned by Mr Hadi, with witnesses saying Houthi militants had been seen on a road which is home to several senior cabinet ministers.

The latest fighting comes after Houthi militants abducted a senior presidential aide on the weekend, claiming the “arrest” was made in order to prevent the government from breaking a UN-brokered deal. The agreement would have seen the Houthi withdraw from the capital once a new unity government was formed, but disagreements over the draft constitution has led to rising tensions.