Libyan rebel commanders are trying to negotiate the peaceful surrender of dictator Muammar Gaddafi's home town and major stronghold Sirte while preparing to take it by force, reports say.

As the rebels are getting ready for a new advance on Sirte after Thursday's failure, rebel commanders are trying to talk to elders in Sirte to negotiate the peaceful surrender of the city, a BBC correspondent with the rebels has reported.

Commanders from the rebels' Transitional National Council are quoted as saying they have to take Sirte by all means – whether though diplomacy or through force, which is why they are building up forces for an attack if the attempt at negotiations fails.

The Libyan rebels started earlier on Friday to prepare for a new offensive against dictator Muammar Gaddafi's stronghold Sirte, after their first advance on Thursday was ambushed and beaten back.

The rebels are building up their forces around the town of Bin Jawad, preparing for an assault on Sirte, about 100 km to the west, the BBC correspondent on the ground reported, also adding that the rebels' mood is still buoyant, despite running into unexpectedly stiff resistance.

Rebel commanders are cited as saying they think the fighting on the road to Sirte could last another three or four days.

On Thursday, the Libyan rebels moved to advance on the region of Sirte, Gaddafi's bastion and birthplace. Sirte, 450 km east of Tripoli, and Sabha, 600 km to the south, are Gaddafi's two last major strongholds.

As the Libyan rebel forces started to push towards Sirte on Thursday, however, the dictator's loyalists managed to halt their advance, ambushing a large column of rebel vehicles near the town of Bin Jawad, according to international reports, killing dozens of rebels, with the rest of the rebel troops withdrawing hastily to the east towards the town of Ras Lanuf.

Reports as of early Friday morning suggested that Libyan dictator Muammar Gaddafi himself might be in Sirte, his birthplace.