The Ukrainian military said Monday it was preparing for a "final stage" of taking back the city of Donetsk from pro-Russian separatists after making significant gains that have split rebel forces on the ground.

Spokesman Andriy Lysenko said Kiev's troops had cut Donetsk off from the other main rebel-held city of Luhansk, 150 km away, on the border with Russia.

"The forces of the anti-terrorist operation are preparing for the final stage of liberating Donetsk," Lysenko said. "Our forces have completely cut Donetsk off from Luhansk. We are working to liberate both towns but it's better to liberate Donetsk first — it is more important."