Heavy fighting between government loyalists and rebels for Yemen's third city Taez has left more than 80 people dead in the past 24 hours, military sources said on Monday.

The dead bodies of 50 Shiite Huthi rebels and allied troops were retrieved from the city on Monday, the sources in Taez said, adding that 31 pro-government fighters were also killed.

Loyalist and rebel forces have fought over Taez -- a key city seen as a gateway to capital Sanaa -- for several days as pro-government troops press recent territorial gains after retaking much of southern Yemen from Iran-backed rebel fighters.