An emergency meeting on the crisis has been called in Brussels where EU foreign ministers are in talks to try and resolve the problem.
As many as 100,000 people are thought to have been displaced due to the fighting, which has been going on between Russian and Georgia.
However, on Tuesday, Russia said it had ended all its military activity in the troubled area and as proof of this, troops have been seen leaving.
But then on Wednesday, journalists said they saw Russian tanks patrolling the streets of Gori, which is the nearest main Georgian town to the South Ossetian border.
Georgian President Mikhail Saakashvili has claimed that Russia is in breach of the truce because of ongoing military presence around the country, and he maintains that the ceasefire on the Georgian side had been stuck to.
French President Nicolas Sarkozy, who is currently also the EU president, met with President Medvedev in Moscow on Tuesday before travelling to Tbilisi.
France is hoping that Wednesday's meeting will approve its peace plan before it goes to the UN Security Council.
