Loyalist sources in Derry confirmed yesterday that up to 10 families have been ordered to leave the city as a result of an internal leadership struggle within the UVF.
The power struggle, which has been going on for the last four weeks, has been condemned by local DUP Alderman, Mr William Hay, who has called for both sides in the feud to pull back before lives are lost.
A senior police officer in the city has called for leaders in the loyalist community to use their influence to resolve the issue.
Yesterday a PSNI spokesman said that six men arrested in various locations in the Waterside area of the city for questioning about serious crimes on Thursday, had all been released without charge. It's understood that the arrests are linked to the internal UVF power struggle.
"The situation is bad at the moment and we don't want it to get worse", said Alderman Hay.
"There is an internal leadership struggle going on within the UVF, but whatever the issues are there must be a better way to resolve them. People must work to ensure that we don't make a bad situation worse.
"Families have been told to leave the city within a number of hours. This has been building up for a number of weeks and it has now come to a head.
"I have spoken to the police about this and they are fearful that the situation could get out of hand even more. It has to be stopped before we have a situation of someone being seriously injured or killed. No-one wants that", he said.
Meanwhile, PSNI acting Chief Supt Dawson Cotton said police patrols in the Waterside area have been stepped up.
"We are actively investigating a number of recent reports of intimidation in the Waterside and patrols there have been stepped up in an effort to thwart those involved. I would ask the community leaders to do what they can to help bring an end to this activity," he said.