Libya’s transitional leader has declared liberation of the country, three days after the death of its leader of four decades, Muammar Gaddafi.

Revolutionary forces captured fighters close to Mutassim Gaddafi, one of fugitive leader Muammar Gaddafi’s sons in his father’s home town, but there was no confirmation that he had been captured, a Libyan spokesman said today.

Libya’s de facto leader said today he is optimistic the former rebels will declare total victory over forces loyal to Muammar Gaddafi in less than a week, opening the way for a transitional government to be formed within a month.

The head of Libya’s National Transitional Council said today an interim government will be announced in the coming week.

Sharp splits are already emerging in the ranks of Libya's new rulers between Islamic conservatives and more secular figures competing for power even as the leadership begins to settle in Tripoli.

The Gaddafi regime warned British officials that there would be “dire consequences” for relations between the UK and Libya if Lockerbie bomber Abdelbaset al-Megrahi died in his Scottish jail cell, it has emerged.

Members of ousted Libyan leader Muammar Gaddafi’s family have entered Algeria, reports say.

Libya’s rebels began as a disparate group of former government insiders, Western-leaning intellectuals, businessmen and even a smattering of ex-Islamist militants.

Thousands of mourners have joined the funeral procession for the Libyan rebels' military chief a day after he was gunned down under mysterious circumstances.

The head of the Libyan rebel armed forces was shot and killed just before arriving for questioning by rebel authorities, their political leader said in a carefully worded statement to reporters that gave few details on who was behind the killing.

Hundreds of rebels have launched a broad offensive against government forces in western Libya and seized three small towns, spokesmen say.

Libyan rebels, backed forcefully by European leaders, rejected a ceasefire proposal by African mediators because it did not insist that Muammar Gaddafi relinquish power.

A Libyan opposition leader says the rebels will accept a UN-demanded ceasefire if Muammar Gaddafi pulls his forces from all cities and allows peaceful protests.

A rebel leader pleaded with the international community today to approve a no-fly zone over Libya as Muammar Gaddafi's forces gained strength in the east, securing a key port city and oil refinery.

The head chaplain for the New York’s jails has been suspended while the city investigates incendiary statements he allegedly made last year, including a comment that the “greatest terrorists in the world occupy the White House".