Libyan armed forces loyal to Muammar Gaddafi have cleared "armed gangs" from the oil-rich town of Brega in the east, an army source told state television on Sunday.
"Brega has been cleansed of armed gangs," the military source was quoted as saying. The report could not immediately be verified. State television has in the past issued false reports claiming territory.
But the claim comes amid a string of setbacks for the rebels who have lost several cities in the east to pro-Gaddafi forces. Brega's fall into the hands of Gaddafi loyalists would deal a further blow to the opposition's morale and momentum.
Pro-Gaddafi forces have been swiftly advancing on the poorly equipped and loosely organised rebels who had seized much of the eastern parts of the country since the uprising against Gaddafi's decades-long rule began last month.
On Saturday, pro-Gaddafi forces pushed the frontline deeper into rebel territory to just 40km outside Brega, the site of a major oil terminal.