RIMBO, Sweden (Reuters) - The United Nations is proposing that all armed forces from Yemen’s warring parties withdraw from the port city of Hodeidah and that an interim entity be set up to run the city, a lifeline for millions of people in the country’s war, sources said.

The proposal is still being discussed at U.N.-sponsored peace talks between the Iranian-aligned Houthi movement and the Saudi-backed Yemeni government in Sweden.

The sources familiar with the talks said the U.N. proposal envisions a “joint committee or independent entity” to manage the city and port after both sides withdraw and the possibility of deploying U.N. monitors.