Yevgeny Prigozhin, leader of Russia's brutal Wagner mercenaries, said there was just "one road remaining" out of the area and urged Ukrainian fighters to leave.
Ukraine has always said by it will defend "fortress" Bakhmut - a key eastern stronghold in the Donetsk region as long as it can.
But officials have now conceded the situation is "increasingly difficult".
Pressure is mounting on Ukrainian troops and civilians as Kyiv's forces tried to help residents flee the city amid what Western analysts suspect may be preparations for a Ukrainian withdrawal.
Prigozhin said in a televised speech: "Wagner paramilitary units have practically surrounded Bakhmut, only one road remains to be captured.
"Earlier we were fighting against the professional army, we now increasingly see old people and children. They are fighting, but their life expectancy in Bakhmut is now one day or two."
Ukrainian president Volodymyr Zelensky, who laid tributes to his soldiers in Lviv on Friday, said fighting was "only increasing" but Russia urged him to allow his forces to retreat.

RUSSIA CLOSING IN ON CITY

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is the World's largest and fastest growing self-service, cross-platform digital newsstand with over 87 million users since its inception in 2011 and thousands of magazines and newspapers across 40+ categories and 60+ languages. Headquartered in New York, Magzter has its local presence in Amsterdam, London, Mexico City, Chennai, Mumbai, New Delhi, Bengaluru, Singapore, and will soon be expanding to other countries. Founded by global entrepreneurs, Girish Ramdas and Vijay Radhakrishnan in June 2011, Magzter enables magazine and newspaper publishers around the world to create and deliver digital editions of their titles to global consumers.

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which gives digital readers unlimited access to 9,000+ magazines and newspapers for a monthly subscription price. Magzter also has the largest number of stories in the world with its game-changing ezRead 2.0 feature for its apps, which enables smartphone and small-screen mobile users to enjoy magazine content the way it was meant to be enjoyed, with article text that is easy to read and is accompanied by stunning videos and high resolution photography.

{{magzter}} is the World's largest and fastest growing self-service, cross-platform digital newsstand with over 87 million users since its inception in 2011 and thousands of magazines and newspapers across 40+ categories and 60+ languages. Headquartered in New York, Magzter has its local presence in Amsterdam, London, Mexico City, Chennai, Mumbai, New Delhi, Bengaluru, Singapore, and will soon be expanding to other countries. Founded by global entrepreneurs, Girish Ramdas and Vijay Radhakrishnan in June 2011, Magzter enables magazine and newspaper publishers around the world to create and deliver digital editions of their titles to global consumers.