Libya's interim governing council said it hoped to seize one of Muammar Gaddafi's last strongholds without resistance yesterday as it tries to control the entire country and restore normality.

At a briefing outside the pro-Gaddafi town of Bani Walid, a National Transitional Council negotiator said talks were over.

"Everything was done yesterday. They asked us for more time and we gave them some more hours," Mahmoud Abdul Azil said.

"Today, God willing, we will go in. There was some fighting overnight. They fired at us first."

Abdul Azil said Nato-backed National Transitional Council forces were just 10km from Bani Walid and inching forward, ready to attack what he said were an estimated 100 pro-Gaddafi fighters there if necessary.

"We are waiting for the order for our commanders to go into the city. We have told them we are coming. Everyone should stay at home. We hope it will be done without bloodshed," he said, as warplanes of the Western alliance roared overhead.

In Tripoli, life was returning to normal after last month's fighting and last week's Muslim holiday.

Traffic was heavy as fuel supplies improved. Cafes were busy and shops and offices opened.

The National Transitional Council announced plans to integrate thousands of its fighters into the police force and find jobs in reconstruction work for others.

There would also be retraining and reintegration schemes for those who fought for Gaddafi.