South Sudan's President Salva Kiir has reshuffled the senior leadership in the ruling party, according to an official decree, as the country faces fresh fighting between rival armed factions and widespread speculation about Kiir's succession plans.

Kiir, 73, promoted his ally and Second Vice President Benjamin Bol Mel as his SPLM party's deputy chairperson, according to a decree read on the state broadcaster on Tuesday night, weeks after the United Nations said the country was on the brink of civil war.

Seen widely by political analysts as Kiir's chosen successor, Bol Mel was sanctioned by the United States in 2017 over suspicions his construction company received preferential treatment in the awarding of government contracts.

If Kiir stepped down, Bol Mel's new role as the SPLM party's deputy chairperson would make him acting president of the country.

Veterans demoted

Tuesday night's ruling party shake-up saw Kiir demote three veterans of South Sudan's liberation struggle, including former Second Vice President James Wani Igga, according to the decree read on state television on Tuesday night.

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Tensions have been brewing in South Sudan in recent weeks sparking fears of a full-blown war as dispute between President Salva Kiir and his deputy Riek Machar escalates.

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The reshuffle follows months of political uncertainty in which authorities placed Kiir's longtime rival First Vice President Riek Machar under house arrest, accusing him of trying to stir a rebellion.

Machar's opposition party denied the charges, and said the move effectively voided a 2018 peace deal that ended a five-year civil war between Kiir's Dinka forces and Nuer fighters loyal to Machar.

Western countries, including the United States, Britain and Germany closed embassies or cut back operations in South Sudan.