There are roughly 33,000 NATO-led troops there now, including 7,700 Americans.
But the situation is so precarious that "we're at ground zero," even though NATO-led troops have been in Kosovo since June, the official said.
NATO-led troops, including Americans, have been caught in the subsequent fighting, though none have been wounded.
NATO-led troops now maintain uneasy peace in Bosnia and Kosovo.
Nine soldiers in the peace force have died and 44 have been wounded since the NATO-led troops arrived in December.
A few thousand NATO-led troops should remain in Kosovo with the power to intervene when necessary to compel compliance.
The NATO-led troops, who have struggled to stay out of the disputes, are slowly being sucked into the conflict.
Germany contributes only 2,500 of the 60,000 NATO-led troops, principally in medical and logistical missions.
But the U.N. ordered 60,000 NATO-led troops into the country to ensure they would.
The idea is gradually to eliminate the zone, which was intended to keep Yugoslav and NATO-led troops apart.