Libyan rebels have vowed to press on with their assault on the town of Bani Walid after failing to persuade forces loyal to fugitive leader Moammar Gadhafi to give up the city.

Rebel forces were amassing outside the town on Tuesday after the National Transitional Council (NTC) rejected proposals put forth Sunday.

The rebels said they were setting up a field hospital outside Bani Walid in preparation for a possible last stand.

Rebel chief negotiator Abdallah Kanshil said that loyalists had been unwilling to continue negotiations despite extensive concessions from his own side.

Rebels, who have besieged the town for days, said Gadhafi's loyalists could only enter the town on the condition that they carried no weapons. The rebels rejected this, saying they feared an ambush.

Rebels said they believed that two of Gadhafi's sons as well as the spokesman for the former regime, Moussa Ibrahim, were in Bani Walid.

On Friday, Ibrahim told the news agency Reuters that Gadhafi was "in a safe place surrounded by many people who are prepared to protect him."

Situated about 180 kilometers (110 miles) south-east of Tripoli, Bani Walid is home to one of the largest tribes in Libya, the Warfalla.

Allegiances to former leader

The tribe made up the core of Gadhafi's army, and many of its members occupied top positions within the regime. Some tribesmen, however, are believed to side with rebels.

Rebel forces were also closing in on Gadhafi's birthplace, the coastal city of Sirte, on Sunday.

"There are ongoing negotiations regarding Sirte between the elders and various tribes and the free Libya forces surrounding Sirte," said NTC military spokesman Ahmed Bani.

"The time is coming when talk is done with and we will enforce our will," said Bani.

Humanitarian concerns

The UN's senior humanitarian official in Libya on Sunday voiced concerns about humanitarian problems in those areas that Gadhafi loyalists continued to control.

"We are preoccupied about the protection of civilians in this area," said Panos Moumtzis. "We would really like to see a peaceful solution as fast as possible."

Officials from the NTC have announced plans to bring their heavily-armed fighters under control and integrate thousands of them into the country's police force.

Author: Richard Connor, Darren Mara (AFP, AP, dpa, Reuters)
Editor: Nancy Isenson