Five Libyan diplomats have been expelled from the UK, as Prime Minister David Cameron reveals that Britain has not ruled out arming rebels fighting against Colonel Gaddafi's troops.
Foreign Secretary William Hague said if the diplomats remained in the country they could "pose a threat" to security.
Sky sources say the five are regarded as the strongest supporters of the Libyan regime within the embassy.
Speaking in the House of Commons during Prime Minister's Questions, Mr Cameron said a decision had not yet been made on supplying anti-regime forces with weapons.
However, he added that United Nations resolutions "would not necessarily rule out the provision of assistance to those protecting civilians in certain circumstances".
His announcement comes after US President Barack Obama made similar comments in a series of TV interviews.
Mr Obama said the noose has tightened around the leader but diplomatic and political pressure needs to be intensified furthe
The president also said he had already agreed to provide non-lethal aid like communications equipment, medical supplies and perhaps transportation to the opposition.
However, Nato secretary general Anders Fogh Rasmussen told Sky News he does not believe the resolution will allow the coalition to arm rebels.
"The Security Council Resolution is very clear in my opinion," he said.
"It requests the enforcement of an arms embargo and actually Nato has decided to participate in the enforcement of the arms embargo. We are there to protect people not to arm people."
Guma El-Gamaty, the UK co-ordinator of the Transitional Interim National Council in Libya, told Sky News he was pleased the diplomats had been expelled.
"I think these people are engaged in activities which are not conducive to peace in Libya.
"There have been threats to Gaddafi's opponents and even threats of assassination."
Meanwhile, there are reports that pro-Gaddafi forces have re-taken the oil town of Ras Lanuf after rebels pulled out of the area.
Opposition fighters, mostly armed with light weapons and riding on 4x4 pick-ups, told the news agency they have been overwhelmed by the superior firepower and range of Gaddafi's weaponry.
Sky's security editor Sam Kiley, near Uqaylah, says the rebels lost Ras Lanuf in the last 18 hours because the coalition was reluctant to carry out air strikes on Col Gaddafi's troops.
There were concerns about not being able to make a distinction between civilians defending the town and the military.
However, Kiley said he can now hear air strikes taking place near Uqaylah.
The rapid reverse comes just two days after the rebels advanced westwards along the coastal road towards the army which had its tanks and artillery defeated in five days of aerial bombardment in the town of Ajdabiya.