US officials meet Gaddafi aides and tell them: It's time to go

Members of Colonel Gaddafi's inner circle held face-to-face talks with US officials in what the Libyan government described today as a "first step in opening dialogue".

But the US state department was quick to rebut the claim, saying the meeting was an attempt to drive home the message that Gaddafi must leave power.

The parties met in Tunisia at the weekend after a decision by the US and 30 other nations to recognise the eastern-based rebels as the country's legitimate representatives.

Libyan government spokesman Moussa Ibrahim said: "This is a first step and we want to take further steps. We don't want to be stuck in the past; we want to move forward all the time."

He described it as a "dialogue" to see about repairing relations between the two countries, which he said had been damaged by misinformation.

The meeting came as rebels said they had routed most of Col Gaddafi's troops in the eastern town of Brega, which has an oil refinery and terminal, and encircled it.

More than 40 people on both sides were reported killed in the fighting for the key site since late last week. Rebel spokesman Shamsiddin Abdulmolah said Brega was covered with landmines "distributed randomly and unsystematically", which is prohibited under international law, and was making it hard for rebels to secure control.

"The main body [of Gaddafi's forces] retreated to Ras Lanuf" to the west, he said. Rebels launched a land and sea attack yesterday in an attempt to ambush Gaddafi forces.

Witnesses reported rocket duels as thick black smoke of burning oil terminals filled the sky. But the Libyan government claimed it beat off the attacks. Mr Ibrahim said: "Unfortunately, 520 of the rebel forces have been killed in these five days. We will turn Brega into hell. We will not give Brega up even if it causes the death of thousands of rebels and the destruction of the city."