Former rebels clashed on Sunday with pro-Moamer Kadhafi forces at Bani Walid and were closing in on Sirte, poised for all-out attacks on his final bastions, as one of his sons arrived in Niger.
The deputy head of the National Transitional Council (NTC), meanwhile, told reporters in Tripoli that a new transitional government will be formed within 10 days.
"A new government will be formed within one week to ten days," said Mahmud Jibril, who serves as NTC "prime minister."
Rebel forces are still "in the process of liberating Libya, and revolutionary combatant are still on the fronts," Jibril said, adding that another government will be formed once "Libya is liberated."
An AFP correspondent said at least three fighters were killed and 15 wounded in the skirmishes on the outskirts of Bani Walid, near to where forces loyal to Libya\'s new rulers were massed, waiting for the signal to storm the oasis town.
Interim leader Mustafa Abdel Jalil on Saturday gave the green light to attack Bani Walid southeast of Tripoli, Kadhafi\'s hometown Sirte to the east and Sabha in the deep south after declaring the deadline for pro-Kadhafi enclaves to surrender over.
Saadi Kadhafi arrived in Niger on Sunday, government spokesman and Justice Minister Marou Amadou said.
"Today, September 11, a patrol of the Nigerien armed forces intercepted a convoy in which was found one of Kadhafi\'s sons," Amadou said, identifying him as Saadi.
"At this moment the convoy is en route to Agadez (northern Niger). The convoy could arrive in Niamey between now and tomorrow," he added.
Saadi, 38, the third of Kadhafi\'s seven sons, is a playboy who renounced a football career in 2004 to join the army, where he led an elite unit.
The whereabouts of Kadhafi himself remain a mystery. Niamey has insisted Kadhafi was not on Nigerien soil.
Streams of NTC fighters backed by armoured vehicles mounted with anti-aircraft guns arrived during Sunday on the edge of Bani Walid, 180 kilometres (110 miles) from Tripoli, an AFP correspondent said.
The fighters said they had routed Kadhafi loyalists and snipers from Wadidinar, a valley in the shadow of Bani Walid, as they pushed towards the town.
Clashes erupted in the afternoon in the neighbourhoods of Al-Mansila and Al-Hawasim, according to fighter Ahmed al-Warfalli.
Military commanders insisted that the main assault had yet to begin.
"Today we are still on standby and waiting for orders," said one commander, General Atiya Ali Tarhuni.
A pro-Kadhafi radio station all afternoon broadcast an appeal to residents to rally against the attackers.
"They want to spread corruption and destruction everywhere. Go today, today, today -- now you are armed there is no excuse. This is the time for jihad (holy warfare)," it said.
By evening, ambulances were rushing to and from the front line, amd an AFP reporter counted three fighters killed and 15 wounded.
An emergency services doctor operating a field clinic in the hamlet of Wishtata, 40 kilometres (25 miles) from Bani Walid, said most of the wounded were treated for "sniper shots and explosions."
"There are Kadhafi military people in the heights of Bani Walid shooting down at rebels," said Dr Mehdi Barut.
After dark a pick-up truck arrived with four men the fighters said were pro-Kadhafi prisoners. They were locked in a room at the clinic.
Similar skirmishes on Friday night saw four NTC fighters killed and 26 wounded.
Sami Saadi Abu Rweis, a fighter returning from Bani Walid, reported snipers everywhere.
"They are shooting at us from two kilometres away. Bani Walid is full of arms -- every household has them.
"There is some type of treason going on. People pretended to be with the rebels but are really with Kadhafi."
Another AFP correspondent said that west of Sirte, around 200 pick-ups with mounted light artillery gathered before dawn in the desert and began moving south, cutting through villages to the west and southwest, meeting no resistance.
Armed with Katyusha and Grad rockets, anti-aircraft guns and heavy machine guns, they ripped down pro-Kadhafi flags en route, and were met by villagers flashing victory signs and shouting "Allahu Akbar (God is greatest)."
NTC leader Abdel Jalil arrived on Saturday to a red-carpet welcome at Tripoli\'s Metiga military base where he was mobbed by hundreds of supporters.
The visit, his first to Tripoli since his forces seized the city last month, was eagerly awaited in the hope that it would help tackle rivalries emerging among the groups that overthrew Kadhafi.
Abdel Jalil said the NTC "has mapped out a path and we hope that Libyans understand that we have to move along this path fast and that it is no time for revenge."
Many NTC members, including half of the executive committee, moved to Tripoli after it fell late last month, but Abdel Jalil and Jibril were slow to arrive.
Abdel Jalil is expected to tackle political tensions already surfacing between the capital Tripoli and other NTC strongholds, particularly the second-largest city Benghazi, which was the rebels\' wartime base, and the third-largest city Misrata, which endured a prolonged siege by Kadhafi forces.
Anti-Kadhafi fighters in Misrata have started to challenge NTC authority, refusing to turn over abandoned tanks as requested by interim leaders.
In western Libya, at least 12 people were killed and 16 wounded when two groups of fighters opposed to Kadhafi turned on each other, two officials said on Sunday.
The fighting, which pitted combatants from the towns of Gharyan and Kikla on the one side and from Asabah on the other, broke out on Saturday during a dispute over ownership of heavy weapons.
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