About 200 members of radical Fatah al-Islam continue to offer stiff resistance to the Lebanese army at Nahr al-Bared camp, where fierce fighting between the government troops and Islamic militants over the past two months has left at least 120 soldiers, and over 130 militants and civilians dead.
"The Army command is planning to wipe out Fatah al-Islam by August 1," the source told RIA Novosti on conditions of anonymity.
Lebanon celebrates Army Day on August 1.
The remaining Islamists, including 24 wives of militants and 16 children, have been cornered in an area no more than 200 square meters, and Lebanese troops started Wednesday what appears to be the final push on militants' positions deep inside the camp, directing heavy tank and artillery fire on sporadic pockets of resistance.
The source said that the army has scaled down its operations in the camp during the past several days to offer the militants "the last chance to evacuate their wives and children."
Lebanese media earlier reported some 200 civilians had left the devastated camp, which used to be home to about 40,000 Palestinian refugees.
Lebanon has demanded the unconditional surrender of Fatah al-Islam, reportedly linked to al-Qaeda, and has refused to conduct direct talks with the Islamist group.
"They [the militants] have two choices - either surrender or die," the source said.
The conflict with Fatah Islam militants in Nahr al-Bared, which started on May 20, is Lebanon's worst eruption of internal violence since the 1975-90 civil war.
