Emboldened by recent victories, the pro-Gaddafi forces stepped up its military offensive against the rebels who are desperately seeking to defend Ajdabiya, which is seen as "the last line of defence" to Benghazi where the opposition's National Council is based. The attack on Ajdabiya, 100 kilometre west of Benghazi, is seen by the rebels as "a vital city".
"It's on the route to the east, to Benghazi and to Tobruk and also to the south. Ajdabiya's defence is very important. We will defend it," rebel commander General Abdel Fatah Yunis, who resigned as Muammar Gaddafi's interior minister, was quoted as saying by the Al Jazeera channel.
A week ago the rebels dominated the entire eastern half of the country and seemed to threaten Gaddafi's stronghold of Tripoli even though they were outgunned and loosely organised.
But now the "Gaddafi forces are advancing and it seems that fighting is carrying on and coming close to Benghazi".
"It seems like we are entering the final phase of the conflict but whether this revolution will fail or succeed, that will only be determined in the coming weeks," it said.
Amid growing international pressure on Gaddafi to quit, the embattled leader offered an amnesty to rebels. The Al Jazeera quoted Libyan state television as saying that Gaddafi has offered an amnesty to rebel fighters if they agree to lay down their arms.
Given the overwhelming superiority of Gaddafi's military forces, the offer will play on the mind of very anxious rebel forces who don't know how they are going to put up a fight against his forces, the report said.
Ahead of a key meeting of G8 foreign ministers in Paris on Monday to consider options for Libya, France and Britain stepped up calls for other world powers to isolate Gaddafi with a no-fly zone.
The G8 -- Britain, Canada, France, Germany, Italy, Japan, the United States and Russia -- plan to discuss proposals for a no-fly zone to ground the fighter jets pounding Libya's rebel forces.
British Foreign Secretary William Hague said the restive nation risks becoming a "pariah state" if Gaddafi remains as its leader.
"If Gaddafi went on to be able to dominate much of the country, well this would be a long nightmare for the Libyan people, and this would be a pariah state," he was quoted as saying by the BBC.
As US Secretary of State Hillary Clinton and other top diplomats from the G8 nations gathered in Paris, France said it was discussing the setting up a 'no-fly' zone to protect civilians "in the face of the terrible violence suffered by the Libyan population."
France, which has already offered diplomatic recognition to Libya's opposition, underlined the need to urgently act against the "barbarity" by Gaddafi's forces.
Even as Britain and France, which are drafting a resolution for the United Nations Security Council, have come out openly in support of the idea, there has been no firm backing from the European Union or North Atlantic Treaty Organisation so far.
Russia and China, which wield vetos on the UN Security Council, have expressed serious reservations on the issue. But Russian Foreign Minister Sergei Lavrov said he wanted more information on the Arab League proposal for a 'no fly' zone in Libya, the BBC reported.
