The U.N. envoy to Libya has warned that the country only has enough money to pay salaries for another six weeks and is urging its warring parties to agree on a unity government.

Bernardino Leon spoke on Wednesday in Algiers at the opening of talks between Libyan activists and political party leaders, one of the many tracks negotiating a new draft proposal for a unity government.

Libya is divided between rival governments and hundreds of militias while groups allied to the Islamic State grow in strength.

Leon said the ongoing chaos means that after six weeks "the country will not be able to keep Libya's functioning state as a functioning administration."

He urged all sides to reach an agreement on the fourth version of the draft proposal currently under discussion.