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Edition: U.S. Article Comments (1) Slideshow Video Full Focus Editor's choice A selection of our top photos from the past 24 hours. Full Article Follow Reuters Facebook Twitter RSS YouTube Read Asia pollution blamed for halt in warming: study 04 Jul 2011 Jury resumes deliberations in Casey Anthony murder trial 10:52am EDT Job cuts at major banks intensify: IFR 04 Jul 2011 Who wants to live forever? Scientist sees aging cured 04 Jul 2011 Libya denies Russia report Gaddafi seeking way out | 11:29am EDT Discussed 206 Minnesota government shutdown begins after talks fail 114 Obama: ending tax breaks required to cut deficit 102 White House snubs McConnell invitation to Obama Watched Hefner's revenge; Ryan Reynolds stops traffic Fri, Jun 17 2011 A Tokyo-Paris flight in under three hours on the horizon Fri, Jun 24 2011 French writer to file charges against DSK Mon, Jul 4 2011 Libya denies Russia report Gaddafi seeking way out Tweet Share this Email Print Factboxes Latest developments in Libyan conflict 7:04am EDT International recognition of Libya's rebel movement 5:44am EDT Related News Analysis: Libya peace efforts appear to gather pace 5:44am EDT UK's Cameron says Taliban could have future in government 8:31am EDT Libyan rebels expected to meet NATO, EU next week 9:57am EDT ICRC alarmed by situation in Libya, says fears worse 11:29am EDT Analysis & Opinion Retirement solvency “a growing challenge” says GAO Pope slams selfish food speculators, urges curbs on world commodity markets Related Topics World » United Nations » Italy » Libya » Related Video Gaddafi government says in talks 2:16am EDT 1 / 7 Libyan leader Muammar Gaddafi plays chess with Kirsan Ilyumzhinov, the president of the international chess federation, in Tripoli on June 12, 2011 in this still image taken from video broadcast on Libyan state television. Credit: Reuters/Libya TV via REUTERS TV By Lamine Chikhi TRIPOLI | Tue Jul 5, 2011 11:29am EDT TRIPOLI (Reuters) - Muammar Gaddafi is sounding out the possibility of handing over power, a Russian newspaper said on Tuesday, but the Libyan government denied it was in talks about the veteran leader stepping down. Five months into a conflict that has embroiled NATO and become the bloodiest of the "Arab Spring" uprisings, there has been a flurry of reports about talks on Gaddafi ending his 41 years in power in exchange for security guarantees. Russia's respected Kommersant newspaper based its story on a high-level source in Moscow. But the report was denied in Tripoli and Italy said it believed talk of a deal was a ruse by Gaddafi's administration. "Information about negotiations about Gaddafi stepping down or seeking a safe refuge inside or outside the country is simply untrue," Libyan government spokesman Moussa Ibrahim told Reuters. "Gaddafi is not negotiable, this is our position of principle, and the future of Libya will be decided by Libyans. Gaddafi is an historical symbol, and Libyans will die to defend him," said Ibrahim. Despite the talk of a peace deal, the fighting between government forces and rebels continues. A Reuters reporter in Misrata, 200 km (130 miles) east of Tripoli, said rebel positions in the Dafniya district on the city's western outskirts came under heavy artillery fire on Tuesday. The bodies of five rebel fighters were brought in to Misrata's al-Hekma hospital. Medical workers there said 35 fighters had been wounded. Many of them were in critical condition, and some would need to have limbs amputated, staff at the hospital said. Some analysts say that Gaddafi is starting to contemplate an exit plan as shortages of cash and fuel, the NATO bombing campaign and rebel military pressure shorten the odds on him being able to hold on to power. But Western diplomats caution that it is in Gaddafi's interests to send out conflicting signals about possible deals, in the hope that it will sow confusion among the rebels and the fragile Western alliance trying to push him out. "SEEKING GUARANTEES" Kommersant newspaper reported Western powers, including France, were receptive to a deal with Gaddafi if he agrees to step down. "The colonel (Gaddafi) is sending signals that he is prepared to relinquish power in exchange for security guarantees," the newspaper quoted what it called a high-level source in the Russian leadership as saying. The report came a day after Russia hosted South African President Jacob Zuma -- who has tried to broker a peace deal for Libya -- and NATO Secretary General Anders Fogh Rasmussen for talks which focused on Libya. After his return from Russia, Zuma's office issued a statement saying he had asked NATO to persuade the rebel National Transitional Council to come to the negotiating table. "The meeting was very successful, and I am confident that it will contribute significantly to reaching a solution that will bring peace and stability in Libya," the statement said. On Monday, the Libyan government had said it held talks in Italy, Norway and Egypt with senior figures in the opposition about finding a peaceful way out of the conflict. DRIVING A WEDGE But the Italian government denied any talks had taken place on its soil and expressed skepticism that Gaddafi's administration was sincere about talks. "The aim of Tripoli's people, Tripoli's regime is to drive a wedge within the coalition," said Italian foreign ministry spokesman Maurizio Massari. "So I interpret this false information as ... a demonstration of weakness of Gaddafi's regime." Speaking to Reuters on Tuesday, Libyan government spokesman Ibrahim said the Italian government was mistaken. He said he could not reveal the identity of the Italian government member who attended the talks "for diplomatic reasons." NATO launched its bombing campaign in March after the United Nations Security Council authorized the use of all necessary means to protect civilians who, inspired by revolutions in neighboring Tunisia and Egypt, rose up against Gaddafi. Gaddafi says the rebels are armed criminals and al Qaeda militants. He has called the NATO operation an act of colonial aggression aimed at stealing Libyan oil. Rebels control the eastern third of Libya, as well as pockets in the West, and NATO says its strikes are gradually eroding Gaddafi's hold on power. But the rebels have failed to make a breakthrough and advance on Tripoli. (Additional reporting by Tarek Amara in Tunis, Ali Shuaib in Tripoli, Hamuda Hassan in Misrata, Libya, Marius Bosch in Johannesburg, Steve Gutterman in Moscow and Deepa Babington in Rome; Writing by Christian Lowe; Editing by Robert Woodward) World United Nations Italy Libya Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (1) KiazerSouze wrote: There is no haggling with GOD. However, if he wants garaunteed safe passage and subsequent non violent Humane reform, then that still remains his option to take. Jul 05, 2011 6:44am EDT -- Report as abuse See All Comments » Add Your Comment Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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