Libyan rebels looked to have driven pro-government forces out of the besieged city of Misrata on Sunday despite continued rocket attacks and an intercession by local tribal leaders.
Rebels have reportedly driven Moammar Gadhafi's forces to the edge of the city and taken control of the main hospital.
The government fired 70 rockets into the city, killing two, according to the Associated Press.
"Now Gadhafi's troops are on the outskirts of Misrata, using rocket launchers," said one resident, describing how 300 to 400 Gadhafi loyalists who had been holed up in the hospital were trying to melt into the local population.
"They are trying to run (a)way," said the resident, speaking on the condition of anonymity for fear of reprisals. "They are pretending to be civilians. They are putting on sportswear."
Thousands of people, many of them foreign workers, were stranded in Misrata during the fighting. Since last week, hundreds of migrants, along with wounded Libyans, have been evacuated in aid vessels through the port.
The government had previously claimed to have called off its assault on Misrata while Libya's tribal chiefs negotiated with the rebels.
The chiefs are calling on the rebels to lay down their arms within 48 hours, according to Libya's deputy foreign minister Khaled Kaim adding that, if the talks fail, the chiefs may send armed supporters into Misrata to fight the rebels.
It is unclear whether any talks have yet taken place. Rebels in the city have also questioned how much support Gadhafi has among the chiefs.
The city is the only rebel stronghold in the government-controlled western half of Libya, and has been the scene of intense fighting in recent days.
At least 24 people were killed and 75 were wounded, many of them critically, said a doctor at an area hospital.
Kaim said the tribal chiefs are determined to put an end to the fighting, in part because it has blocked access to the Misrata seaport.
"The leaders of the tribes are determined to find a solution to this problem within 48 hours," he said.
If negotiations fail, "the other option, which is still available for the leaders and the heads of the tribes is a military intervention to liberate Misrata," he said.
He said the six main tribes in the region can muster 60,000 armed men.
With files from Associated Press
