Thousands of Burmese villagers were displaced as junta planes bombed a town in Myanmar.

Some 40,000 people have fled the fighting as Myanmar Air Force jets allegedly carried out airstrikes in Loikaw, Kayah State, Kayah rebel forces said on December 9.

Clashes have been ongoing in Loikaw since November 11, when resistance fighters launched 'Operation 111' targetted military outposts in Kayah and neighbouring Shan state, local media reported.

An estimated 76 people were reported killed.

Thai authorities said security at the Thai-Myanmar border has been strengthened as the conflict rages.

Parnpree Bahiddha-Nukara, Thailand's foreign affairs minister, said the government was ready to build shelters to receive refugees at the border.

Myanmar has suffered ongoing unrest and spiralled towards civil war following the removal of well-liked leader Aung San Suu Kyi in a military coup last February.

Soldiers responded with barbaric force on civilians leading to widespread condemnation and financial sanctions. Rebel groups and civilian militias around the country have been locked in a series of ongoing clashes with the ruling military.