Explosions have been heard in Colonel Muammar Gaddafi's home town of Sirte - as the rebel advance west towards the capital Tripoli was halted by Libyan government forces.
Sky's Sam Kiley, in Bin Jawad, said: "The rebels are about 60 miles from Sirte istelf, which is where they were blocked when they were advancing the first time round.
"There have been some coalition airstrikes and some outgoing rockets fired by the rebels on Sirte but clearly the Gaddafi elements are going to put up a fight for Gaddafi's hometown."
Rebel fighters came under heavy machine-gun fire from government loyalists in pick-up trucks on the road from Bin Jawad.
The rebels set their sights on Sirte as Nato finally took full command of military operations in Libya from the US-led coalition, enabling the alliance to strike at Col Gaddafi's forces if they threaten civilians.
The rebels took five key towns - Ajdabiyah, Brega, Uqayla, Ras Lanuf and Bin Jawad - as coalition airstrikes allowed them to move west over the weekend.
The AFP news agency reported that at least nine explosions had been heard in Sirte on Monday morning.
Earlier, a rebel spokesman claimed that the coastal town - 280 miles east of Tripoli - had fallen, but foreign journalists inside Sirte said there was no sign that the opposition was in control.
Sky's Emma Hurd, in the rebel-held city of Benghazi, said: "Rather strangely the government decided to take a few journalists there yesterday and they stayed there overnight.
"They are telling us that the town has not fallen to the rebels. They are saying it is quiet there ... there is certainly no evidence that the rebels are inside Sirte and in control of that town."
A Reuters reporter said he had seen police and soldiers in the centre of Sirte and had not witnessed any fighting.
However, it was also reported that that a convoy of 20 military vehicles, including truck-mounted anti-aircraft guns, had been seen leaving Sirte and moving westwards towards Tripoli as the rebels closed in.
Dozens of civilian cars carrying families and personal belongings were also reportedly leaving the town.
Libyan television confirmed that Sirte had been the target of air raids.
Witnesses in the capital said the strikes targeted the road to the airport, as well as the eastern Ain Zara neighbourhood.
Tripoli and the desert town of Sabha were also reportedly hit by coalition aircraft, with the Libyan government saying there had been a number of civilian casualties.
Sky News producer Tom Rayner, reporting from Tripoli, said: "We heard at least four explosions, about 30 seconds apart."
The Ministry of Defence said that RAF Tornados flying from Britain had taken part in the raid on Sabha, which targeted ammunition bunkers.
"Initial reports suggest that the bunkers have been destroyed and that the Libyan government has been denied ammunition it uses to threaten civilians in the north of the country," it said in a statement.
State television blamed "the colonial aggressor" for the airstrikes.
Meanwhile, Libya's state news agency said a ceasefire had been announced in the battle with "terrorists" in Misratah.
"The city of Misratah now enjoys security and tranquility and public services have started to recover their ability to provide customary services to all citizens," the Jana news agency quoted the foreign ministry as saying.
Gaddafi's forces have been bombarding the rebel-held city, which has been sealed off for days.
On Monday, a rebel commander said that government troops had taken control of part of the city.
France and Britain urged Gaddafi's supporters to drop him before it was "too late" and the opposition to join a political process to pave the way for his departure.
"Gaddafi must go immediately," President Nicolas Sarkozy and Prime Minister David Cameron said in a joint declaration.
After the Nato decision to take charge of operations, secretary-general Anders Fogh Rasmussen said the alliance taking over command was a "very significant step".
It would implement the UN Security Council resolution and "nothing more and nothing less".
A Downing Street spokesman said: "The military mission has helped to save countless civilians lives; has successfully established a no-fly zone; and has helped shift the momentum on the ground against Gaddafi's attacks on the Libyan people.
"The agreement to transfer complete command and control of all military operations to Nato both ensures that partners from the region are able to participate and represents a significant step forward as we plan for the next phase of this vital mission."
The attacks occurred hours ahead of Barack Obama's planned address tonight in Washington to explain US involvement to a sceptical public.
by skynews.com