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A fleeing Libyan rebel holds on his flag while sitting on the back of a truck driving back the coastal city of Benghazi. Image Credit: AFP

Paris: Forces loyal to Libyan leader Muammar Gaddafi are near the rebel stronghold of Benghazi and "everything will be over in 48 hours", Gaddafi's son Saif Al Islam told France-based TV channel Euronews on Wednesday.

Asked about discussions among world powers to impose a no-fly zone over Libya, he replied: "The military operations are finished. In 48 hours everthing will be over. Our forces are close to Benghazi. Whatever decision is taken, it will be too late."

Gaddafi forces tell Benghazi residents to lay down arms

The Libyan army told people in Benghazi to lay down their arms on Wednesday as its troops advanced closer to the rebel stronghold for what could be the decisive battle in the uprising against Muammar Gaddafi.

The town of Ajbadiyah, 150 km (90 miles) south of Benghazi on the Gulf of Sirte, was firmly in government hands after most of its rebel defenders retreated under fire from a withering artillery barrage on Tuesday. Those who stayed had now handed over their guns, a rebel officer said.

In Benghazi, seat of the insurgents' provisional national council, the mood was a mixture of defiance and nervousness, with some citizens predicting a bloodbath and others confident the rebels would still snatch victory against the government offensive.

Forces loyal to Gaddafi have retaken a string of coastal towns in the past 11 days, reversing gains made by the rebel army early in the uprising against his 41-year-rule of the North African country.

Important oil industry facilities are now mostly back under government control.

With inputs from agencies