South African President Jacob Zuma says the Libyan government has accepted an African Union peace proposal to end the eight-week-old conflict.
Mr Zuma's AU delegation met Libyan leader Col Muammar Gaddafi in Tripoli on Sunday. An AU team is going to the eastern rebel stronghold of Benghazi.
But rebel spokesmen said there could be no truce unless Col Gaddafi stepped down and his forces withdrew.
In Ajdabiya, pro-Gaddafi forces have pushed back rebels in fierce fighting.
Nato says its planes destroyed 25 government tanks on Sunday alone.
The AU deal's main points are:
"The brother leader [Col Gaddafi] delegation has accepted the roadmap as presented by us," Mr Zuma declared.
"We have to give the ceasefire a chance," he said, after several hours of talks.
What the opposition are hearing out of Tripoli could hardly be worse. Yes of course they want a ceasefire but one that involves Col Gaddafi's forces pulling back - that is not part of this deal. And above all they want Col Gaddafi to go, and they are not prepared to engage in negotiations with Col Gaddafi's regime, which they would see as just a delaying tactic to keep him in power.
The other thing they'll be uneasy about is the mood music coming out of this delegation. Jacob Zuma, the South African president, described Col Gaddafi as "our brother leader", his spokesman avoiding any questions about him leaving power. And Jacob Zuma is not even coming to Benghazi, and of course he's the key player in the delegation.
One other aspect of this peace plan was that Jacob Zuma called for a suspension of Nato airstrikes - again something that would make the opposition very uneasy.
In all, the AU mission comprised representatives from five nations: presidents Jacob Zuma of South Africa, Mohamed Ould Abdel Aziz of Mauritania, Amadou Toumani Toure of Mali and Denis Sassou Nguesso of Congo-Brazzaville, and Uganda's Foreign Minister Henry Oryem Okello.
The five-strong panel was approved by the European Union.
However, Western countries involved in the Nato operations have not yet commented on the plan.
Mr Zuma is now returning to South Africa. His foreign minister and the other AU heads of state are travelling on to Benghazi.
Rebel spokesman Mustafa Gheriani told Reuters news agency said the proposal would be considered, but "the Libyan people have made it very clear that Gaddafi must step down".
Another spokesman, Shamsiddin Abdulmolah, told AFP news agency: "The people must be allowed to go into the streets to express their opinion and the soldiers must return to their barracks."
The British-based representative of the Libyan opposition leadership, Guma al-Gamaty, has told the BBC that any deal designed to keep Col Gaddafi or his sons in place would not be acceptable.
The BBC's Jon Leyne in Benghazi says the opposition will be very uneasy that they are in danger of being outmanoeuvred by this delegation, which they will see as being very sympathetic to Col Gaddafi.
An AU official said the idea of Col Gaddafi stepping down had been discussed, but gave no further details.
"There was some discussion on this but I cannot report on this. It has to remain confidential," said AU Commissioner for Peace and Security Ramtane Lamamra.
"It's up to the Libyan people to choose their leaders democratically."
'Helicopters downed'
Nato air strikes have been continuing: the alliance says its planes destroyed 25 government tanks on Sunday alone.
Eleven were reportedly destroyed as they approached Ajdabiya and 14 were destroyed earlier near Misrata, the only city in western Libya still in rebel hands.
Accusing government forces of "brutally shelling" civilian areas, Nato said it was responding to a desperate situation in the two towns, under its UN mandate to protect civilians.
It was one of the biggest series of air strikes since the coalition's initial onslaught, our correspondent says.
Heavy gunfire and loud explosions were heard in the town on Sunday, with reports of intense shelling of the town from the west, from where pro-Gaddafi forces are attacking.
Ajdabiya is important to the opposition as it controls a strategic crossroads and is the last town before the main rebel city of Benghazi.
Our correspondent says the rebels reported capturing Algerian mercenaries from Col Gaddafi's forces, though this cannot be independently verified.
Libyan Deputy Foreign Minister Khaled Kaim said government forces had shot down two rebel helicopters in the east but this also cannot be confirmed.
He said: "A clear violation was committed by the rebels to [UN] resolution 1973 relating to the no-fly zone."
Speaking in Brussels, the commander of the Nato operation, Lt Gen Charles Bouchard, said that air strikes were also targeting government ammunition bunkers and lines of communication.
He cited as "an example of Nato impartiality" a report that a MiG 23 jet flown by rebel forces had been intercepted and forced to land within minutes of taking off from Benina Airfield near Benghazi on Saturday
bbc
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