Algerian diplomat Lakhdar Brahimi is expected to be appointed as the new UN-Arab League envoy for Syria, according to diplomats.
If confirmed, Lakhdar Brahimi would succeed former UN Secretary General Kofi Annan, who resigned last week saying he could no longer carry out the role.
A six-point peace plan proposed by Kofi Annan failed to come into effect, and violence has escalated.
Rebels lost control of a key area of Aleppo after weeks of fighting.
The rebel Free Syrian Army (FSA) confirmed it had retreated from the strategic Salah al-Din district in the face of a large-scale government offensive launched the previous day.
Algerian diplomat Lakhdar Brahimi is expected to be appointed as the new UN-Arab League envoy for Syria
Lakhdar Brahimi’s appointment could be announced as early as next week, barring last-minute objections from governments, diplomatic sources told journalists.
Lakhdar Brahimi, 78, has held a long series of high-profile diplomatic posts.
As a senior Arab League official between 1984-91, he brokered an end to the Lebanese civil war, going on to serve as Algerian foreign minister between 1991-3.
Later, he was twice appointed as the UN’s top envoy for Afghanistan, in 1996-8 and in 2001-4. He has held similar roles for Haiti and South Africa.
Stepping down last week, Kofi Annan said he was unable to fulfill his role because of the growing militarization of the conflict in Syria, as well as the continuing deadlock over the issue in the UN Security Council.
Russia and China have vetoed resolutions on the crisis three times, citing their opposition to any action which might be seen as regime change imposed from outside.
After taking up his post in February, Kofi Annan formulated a peace plan that called for an end to the use of heavy weaponry, the free passage of aid, freedom of media and demonstration and for a Syrian-led political process to address the aspirations and concerns of the Syrian people.
It was supposed to come into effect in mid-April, but government forces continued to shell opposition strongholds and the opposition forces never fully committed to it.
The fighting recently intensified in the two main cities, with experts describing it as a new phase in the conflict.
Rebel fighters had been heavily embedded in Aleppo’s Salah al-Din district since seizing the densely packed area of narrow streets three weeks ago.
The rebels still control several other districts, including some in the east of Aleppo that activists said came under very heavy bombardment on Thursday.
State television said dozens of rebels had been killed or wounded in fighting in the Hananu quarter.
Aleppo is Syria’s largest city, and Salah al-Din is considered a vital supply route for government troops coming from the south.
Syrian rebel commanders say they have lost control of the strategic Salah al-Din district in the northern city of Aleppo after a government offensive.
The city has come under fresh bombardment, as the army attempts to recapture areas seized by rebels.
Iran called for dialogue between the government and opposition, at the start of a summit on the crisis in Tehran.
Meanwhile, Lebanese authorities have detained a former minister with close ties to Syria’s President Bashar al-Assad.
Michel Samaha, who is known for his pro-Syrian views, was taken for questioning by the Lebanese Internal Security Forces over what were described as security reasons.
The Free Syrian Army (FSA) has confirmed it has retreated from Salah al-Din, a densely packed area of narrow streets on the south-west side of Aleppo, where rebel fighters had been heavily dug in.
Syrian rebel commanders say they have lost control of the strategic Salah al-Din district in the northern city of Aleppo after a government offensive
State media had reported the army was in full control of the district, saying it had inflicted heavy losses on hundreds of “terrorist mercenaries”.
“We have staged a tactical withdrawal from Salah al-Din,” rebel commander Hossam Abu Mohammed of the Dara al-Shahbaa Brigade in Aleppo told the AFP news agency by phone.
“The district is completely empty of rebel fighters. Regime forces are now advancing into Salah al-Din.”
The rebels still control several other districts, including some in the east of the city which activists say are coming under very heavy bombardment.
State television reported clashes there too, in the Hananu quarter. It said dozens of rebels had been killed or wounded, while others had thrown down their weapons and fled.
On Wednesday, Syria’s state military launched a large operation to retake Aleppo from rebel fighters, who overran some areas three weeks ago.
Aleppo is Syria’s largest city, and Salah al-Din is considered a vital supply route for government troops coming from the south.
The Syrian Observatory said at least 26 people were killed in Aleppo on Wednesday – it said they were among 130 people killed across the country.
Meanwhile, three days after Prime Minister Riad Hijab defected to the opposition, the health minister Wael al-Halqi has been named as his replacement.
Wael al-Halqi is a Baath Party loyalist from Deraa in the south of the country, where the uprising began in March last year, and where violence is still raging.
Riad Hijab, whose defection was considered the most significant since the revolt began, was said to have crossed into Jordan on Wednesday.
Opening a 29-nation conference in Tehran, Iranian Foreign Minister Ali Akbar Salehi said dialogue between both sides was the only solution to crisis.
“The Islamic Republic of Iran firmly believes that the Syrian crisis can only be resolved through serious and inclusive talks between the government and opposition groups that enjoy popular support in Syria,” Ali Akbar Salehi said in a speech broadcast on TV.
Western governments, which are not taking part, have expressed skepticism that Tehran can mediate, given its recent strong commitments to the survival of Syrian President Bashar al-Assad’s government.
Iranian President Mahmoud Ahmadinejad, who is a staunch ally of the Assad regime, said the summit would be a gathering of countries with “a correct and realistic position” on the Syrian conflict.
On Tuesday, Iranian security chief Saeed Jalili expressed strong support for President Bashar al-Assad during a visit to Damascus, describing Syria as a crucial part of a regional “axis of resistance”.
Kuwait’s foreign ministry told al-Seyassah newspaper it would not be sending a representative. Lebanon also said it would not attend while Moscow sent its ambassador and not its foreign minister.
On Thursday, Lebanese sources confirmed the detention of Assad ally Michel Samaha, who is being questioned over alleged plans to cause instability in Lebanon.
Michel Samaha was information minister for more than 10 years, serving under the assassinated Prime Minister Rafiq Hariri. Allies of Rafiq Hariri accused Syria of being involved in the attack.
Syrian government forces have taken full control of strategic district Salah al-Din in the biggest city, Aleppo, after fierce fighting, state media say.
However, rebel commanders denied they had retreated from the Salah al-Din district, amid reports of a push by army tanks and armored vehicles.
Images have emerged of bodies in shattered buildings, after the bombardment of a town near Aleppo.
Opposition activists reported at least 20 deaths across Syria on Wednesday.
In another development, Jordanian officials confirmed that former Syrian Prime Minister Riad Hijab had only just crossed into Jordan – two days after his defection was announced.
Syrian government forces have taken full control of strategic district Salah al-Din in the biggest city, Aleppo, after fierce fighting
Activists said he and his family had been hiding in the south of the country and that reports on Monday that he had already left Syria were aimed at throwing government forces off the trail.
State media said government forces had taken full control of Salah al-Din, killing most of the rebels there.
They also reported heavy rebel losses near the historic citadel and in another district.
But a commander from the rebel Free Syrian Army denied that it had withdrawn from Salah al-Din, and said it had launched a counter-attack following the arrival of some 700 reinforcements.
“For an hour and a half the Free Syrian Army has staged a counter-attack and reclaimed three streets out of five seized by regime forces,” Wassel Ayub told AFP news agency by phone.
Another FSA commander, Abdel Jabbar al-Oqaidi, told AFP news agency via Skype: “It is not true the regime army has seized control of the district.
“It is true that there is a barbaric and savage attack.”
A team of Reuters news agency journalists who tried to enter Salah al-Din on Wednesday found that a checkpoint manned by rebel fighters this week had disappeared.
They were told by a lone rebel fighter that the rebels had abandoned their positions. Explosions could be heard as incoming gunfire hit buildings in the area, the Reuters team said.
Journalist Martin Chulov, of the UK’s Guardian newspaper, tweeted from Aleppo that the battle for Salah al-Din would likely decide the fate of the city.
Videos circulated on Syrian social media on Wednesday show people searching the debris of buildings in a town identified as Tal Rifaat, near Aleppo. One clip shows a plane passing overhead followed by an explosion on the ground.
Photos released by Reuters show people recovering body parts from the wreckage. At least one child appears to be among the dead.
Earlier, Amnesty International said satellite images had revealed at least 600 probable artillery impact craters in Anadan, also near Aleppo.
It said any attacks against civilians would be documented so that those responsible could be held accountable.
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