Libyan rebels say they are largely in control of the key eastern town of Brega, after close fighting in residential areas.
Rebels say forces loyal to Libyan leader Col Muammar Gaddafi are retreating west towards Ras Lanuf.The Libyan government denies the claims, insisting it is still in full control of Brega and has killed more than 500 rebels there.
A spokesman said they would rather "turn Brega into hell" than give it up.
It has not been possible to verify the conflicting claims.
Brega, about 750km (465 miles) east of the capital Tripoli, has changed hands several times in the fighting along Libya's Mediterranean coast since the rebellion began in February.
"The bulk of Gaddafi's forces have retreated to Ras Lanuf," rebel spokesman Shamsiddin Abdulmolah told AFP news agency.
He said streets were littered with "an extraordinary number of anti-personnel mines", making it hard to fully secure the area.
The remnants of Col Gaddafi's troops in the town - believed to number about 150 to 200 - are holed up in industrial buildings with dwindling supplies, he added.
"Their food and water supplies are cut and they now will not be able to sleep. It is a matter of time before they come to their senses, we hope to prevent some bloodshed," he said.
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