Talks between Serbian and ethnic Albanian leaders on the future of Kosovo have ended without agreement in Vienna.

The summit was seen as a last chance for the two sides to air their views on proposals to establish a form of self-rule in Kosovo.

United Nations special envoy and chairman of the negotiations, Martti Ahtisaari, said there was no common ground between the two parties and the potential for negotiations had been exhausted.

Mr Ahtisaari will present a report to the UN Security Council later this month.

If the UNSC adopts his blueprint, Kosovo will declare itself Europe's newest independent state and the last to be carved from the former Yugoslavia.

Kosovo has been run by the UN since 1999, when NATO bombed Serbia to drive Serb forces accused out of the province.

Serb forces were accused of a series of atrocities during a two-year counter-insurgency that left an estimated 10,000 Albanians dead and almost one million displaced.