The UN has proposed Yemen's Houthi rebels withdraw from Hodeida as part of a ceasefire deal placing the flashpoint port city under joint control, according to a document seen by AFP Monday.

The document, verified by two sources in a Yemeni government delegation at UN-brokered talks in Sweden, stipulates that the Saudi-led military coalition fighting the Houthis cease all operations in the rebel-held city in exchange for a Houthi withdrawal.

The area would then be put under the control of a joint committee and supervised by the United Nations.