KAMPALA, Uganda — With battles still raging in disputed territory along its border, the new nation of South Sudan announced plans on Saturday to move its capital from the main city of Juba to a small town in the north.

Just north of the border, in Sudan, fighting continued in two states between the Sudanese Army and rebels aligned with the south. In South Kordofan State, 17 people were killed, Reuters reported Saturday, citing a report by the official SUNA news agency. The report gave no further details.

To the east, thousands of people were reported to be fleeing from Blue Nile State, where Sudanese troops began a ground offensive on Friday night. The United Nations refugee agency said Saturday that about 16,000 people had fled across the border into Ethiopia since the fighting there began, The Associated Press reported.

South Sudan, which seceded from Sudan in July, has denied accusations by Sudan that it was aiding the rebels. Officials said Saturday they were moving ahead with plans for building their new nation.