Rwandan-backed M23 rebels asserted their control over east Congo's largest city Goma on Thursday by calling on residents to resume normal life, even as the group clashed with Congolese troops as they tried to take more territory.

The M23 militia, funded and directed by Rwanda, said it had seized the city of Goma, terrifying its people, many of whom sought shelter there after fleeing the rebel advance.

Rwanda, which diplomats say backs M23 fighters who seized Goma in Democratic Republic of Congo this week, called on Wednesday for a ceasefire across eastern Congo and for Congo to negotiate with the rebels while denying Rwandan troops were involved.