Ban Ki-moon said troops should stay out for now for their own safety and to improve the chances of success of such a mission at a later time.
Jean-Maurice Ripert, the French ambassador to the UN, added that peacekeepers should not be deployed until it is clear that Somalis will support the operation.
'Prisoner of the past'
Talk of outside intervention is still coloured by memories of a battle in 1993 in which 18 US soldiers and hundreds of Somali militiamen died.
The incident inspired the Hollywood movie Black Hawk Down and marked the beginning of the end for a US-UN peacekeeping force.
Ould-Abdallah said that "Somalia remains a prisoner of the past, never forgiven for the violent actions carried out against the international community in the 1990s".
"There is, it seems, either a reluctance to go back there or a deliberate decision to punish all Somalis, many of whom were not even born during the last international intervention.
"I am not asking outside countries to become active for moral or altruistic reasons. They have a clearly mandated responsibility to become involved in a country where there are widespread violations of human rights and humanitarian law."
Among the options being considered is the possible deployment of a 28,500-strong multi-national peacekeeping force to replace the small African Union force currently in the country.
"I believe Somalia remains a prisoner of the past, never forgiven for the violent actions carried out against the international community in the 1990s"
Ahmedou Ould Abdallah,
UN special envoy
As the council deliberated on increasing UN involvement, violence continued on the ground, with seven people, including a seven-year-old boy, killed on Thursday when fighters briefly overran two government bases.
Witnesses said fighters drove government soldiers from two bases before retreating following hours of clashes.