“The mission will come to an end on midnight on Sunday,” Assistant Secretary-General for Peacekeeping Operations Edmund Mulet told correspondents after briefing the 15-member body in closed consultations on the future of the UN Supervision Mission in Syria (UNSMIS) and the letter of Secretary-General Ban Ki-moon proposing a continued UN presence in the form of a liaison office.

“In the meantime, we’re working with our colleagues in the Department of Political Affairs to prepare the ground in Damascus to establish this liaison office,” Mulet added.

Syria has been wracked by violence, with an estimated 17,000 people, mostly civilians, killed since the uprising against President Bashar al-Assad began some 17 months ago. In the previous two weeks, there have been reports of an escalation in violence in many towns and villages, as well as the country’s two biggest cities, Damascus and Aleppo.

Initially set up in April for 90 days, UNSMIS’ mandate was extended for another 30 days in late July when the Council adopted resolution 2059. That resolution also indicated that further renewals to UNSMIS’ mandate would be possible only if it could be confirmed that the use of heavy weapons had ceased and a reduction in violence by all sides was sufficient to allow the mission to implement its mandate.

With the 30-day extension, the mission’s mandate is set to expire on Sunday.

“There was a general feeling that the conditions to continue UNSMIS were not fulfilled, but there was also a consensus about the need of keeping a UN presence in Damascus,” Gerard Araud, Permanent Representative of France, which holds the Council’s presidency this month, told correspondents before Mulet spoke.

“On the basis of this consensus, as President of the Security Council, I sent a letter to the Secretary-General to tell him that we take note of his letter and in fact we agree with his proposal of creating a liaison office in Damascus,” Araud said.

In his letter, Ban acknowledged that the conditions to continue the mission had not been achieved, but stressed that the UN cannot discontinue its assistance to the Syrian people in helping to find an end to the crisis.

Ban also urged continued support to the Joint Special Envoy of the United Nations and League of Arab States, a post first filled by former Secretary-General Kofi Annan and now awaiting the appointment of a replacement, following Mr. Annan’s resignation.

“I think it is imperative for the United Nations to have a presence in Syria that can work in other areas to support me in utilizing my good offices, in particular, to support the work of the Joint Special Envoy in mediating and facilitating a peaceful resolution to the crisis,” Ban wrote.

“I intend therefore to work in the immediate future towards establishing an effective and flexible United Nations presence in Syria,” Ban said.

Both Araud and Mulet stressed the desired flexibility of the new structure. Mr. Mulet said that, in order not to have a gap in Damascus, staff already on the ground, who could work in the new office, were already being identified.

“UNSMIS will fade out, but there will be a UN presence,” Araud said.

Staff from the UN Supervision Mission in Syria (UNSMIS) had been impeded from reaching the town in recent days by the ongoing violence in the area. When they reached the site today, most government institutions were set on fire, stores were looted and burned and residential homes appeared rummaged.

“A strong stench of dead bodies was in the air and there appeared to be pockets in the town where fighting is still ongoing,” the spokesperson for UNSMIS, Sausan Ghosheh, said. “The number of casualties is still unclear.”

In addition, the observers found that the Baath Party headquarters in the town was shelled and appeared to be the site of heavy fighting. Remnants of heavy weapons and a range of different calibre arms were found in the town. Cars, both civilian and security, were also set on fire and damaged.

“UNSMIS is deeply concerned about the escalating level of violence in Syria and calls on all parties to put down their weapons and choose the path of non-violence for the welfare of the Syrian people who have suffered enough,” stated Ms. Ghosheh.

The UN estimates that more than 10,000 people, mostly civilians, have been killed in Syria and tens of thousands displaced since the uprising against President Bashar al-Assad began some 16 months ago.

UNSMIS observers have been charged with monitoring the cessation of violence in Syria, as well as monitoring and supporting the full implementation of a six-point peace plan put forward by the Joint Special Envoy of the UN and the Arab League for the Syrian Crisis, Kofi Annan.

The plan calls for an end to violence, access for humanitarian agencies to provide relief to those in need, the release of detainees, the start of inclusive political dialogue that takes into account the aspirations of the Syrian people, and unrestricted access to the country for the international media.

“The  Syrian National Council (SNC) calls on the UN Security Council to convene an immediate meeting to discuss the situation arising from the massacre in the presence of international observers, and determine the responsibility of the United Nations towards the genocide and forced displacement carried out by the regime against unarmed civilians,” according to a statement by SNC.

“The shelling on the town of Houla, Homs lasted for 12 hours, followed by a terrible massacre committed by the regime and its mercenaries,” SNC added.

Some of the victims were hit by heavy artillery, others “slaughtered with knives while entire families, were massacred  SNC said.

The National Council has also called on the Syrian people to declare mourning for three days and  and respond to the massacre, with more demonstrations, especially in Damascus and Aleppo.

Rami Abdel Rahman, head of the Syrian Observatory while giving a lower death toll of 55, agreed that this was “a real massacre” and complained that “U.N. observers are just staying silent” on the matter, according to Al Arabiya.

Meanwhile, Secretary-General Ban Ki-moon blamed the Syrian government on Friday for much of the “unacceptable levels of violence and abuses” occurring every day in violation of a U.N.-backed peace plan.

Ban also called on all elements of the opposition to stop the violence and respect human rights.

“I am more convinced than ever that no amount of violence can resolve this crisis durably. The Mission plans to help bring talks between parties on the ground on urgently needed stability,” he added.

The UNSMIS chief said that the Mission is on its way to full deployment, with some 260 military observers on the ground, hailing from 60 UN Member States, and that he expected the Mission to be fully operational soon, in “record time.”

In relation to the possible involvement of third parties, such as the terrorist group Al-Qaida, in the violence in Syria, the UNSMIS chief noted that there had been some “very worrying incidents”, such as deadly bomb attacks in Damascus on 10 May, which reportedly killed or wounded dozens.

“This is the kind of violence that is obviously impossible at this stage to decide where it came from, by whom,” he said. “I am concerned about incidents where explosive improvised devices are targeting innocent civilians, innocent people, because it is not going to help the situation. I have seen the reports that you refer to, if they are correct it is a worrying development.”

Speaking in Geneva, the spokesperson for Joint Special Envoy Annan, Ahmad Fawzi, told reporters that Mr. Annan has mentioned the involvement of a “third element” in the violence, which has led to further concerns.

“And when we speak about ‘third actors’ on the ground, we mean there are the hallmarks of activities and incidents and explosions that appear to come from sources other than opposition or Government sources. This has yet to be verified.”

Ban Ki-moon, the UN secretary-general, on Thursday said he believed last week’s deadly bombings in Damascus were the work of al-Qaeda, said the UN was still investigating who was responsible for the attacks which killed at least 50 people and injured hundreds.

On Friday Ban called again for all parties in the country to abide by a six-point peace plan proposed by UN-Arab League envoy Kofi Annan and said the UN was accelerating its deployment of its monitoring mission, according to Al Jazeera.

The crisis in Syria, which began in March 2011, has claimed over 9,000 lives, mostly civilians, and displaced tens of thousands.

On the other hand, Syrian authorities have stated that they have withdrawn tanks from all cities.

The spokesman said Annan has reports that Syrian security forces might have killed people who had met with U.N. monitors, and that the international envoy will tell the Security Council that there is a need for “stronger presence” of monitors in Syria, Reuters reported.

“We have credible reports that when they leave, the gunfire starts again, that these people who approach the observers may be approached by the Syrian security forces or the Syrian army or even worse, perhaps killed and this is totally unacceptable,” Fawzi added.

Head of the Syrian National Council, Burhan Ghalyoun, has warned that “If violence persists, we might need to use force to protect civilians.”

At the same time, State TV reported that three people were wounded when the car bomb that went off in the Marjeh district in Damascus, blaming an “armed terrorist group”.

“An armed terrorist group detonated the car bomb near the Yelbugha complex in Marjeh, wounding three people and causing damage to nearby buildings,” it reported.

It also said the bomb was placed under the car of an unsuspecting man, who was among those injured.

The blast came as the Syrian Observatory for Human Rights said violence across the country killed approximately on Monday, despite the ceasefire.

The resolution gives Secretary-General Ban Ki-moon authorization to decide when to deploy the additional monitors, based on developments on the grounds including the consolidation of the cease-fire.

Secretary-General of the U.N., Ban Ki Moon, has accused Assad of failing to honor the truce. The truce, which officially took effect on April 12, and the observer mission are part of special envoy Kofi Annan’s plan for ending 13 months of violence and hold talks between Assad and the opposition.

An expanded observer team is to help implement a cease-fire , even though a similar mission by 165 Arab League observers in January failed to halt violence.

Earlier on Saturday, the Syrian authorities allowed the UN ceasefire monitors to enter the besieged city of Homs after resident opposition activists said shelling and gunfire stopped for the first time in weeks.

The small advance team of monitors, who had previously not been permitted to visit  Homs for “security reasons,” were able to enter the battered district of Baba Amr, Alarabiya reports.