Gun battles between forces loyal to Libya's Muammar Gaddafi and rebels in Libya's northwestern city of Nalut have killed at least eight rebel fighters and wounded 13 more, according to a fighter.

The fighting in Nalut comes a day after rebels captured a 2km stretch west of Misurata in central Libya.

"The battles started yesterday and are continuing today," Abou Saa told the Reuters news agency on Saturday.

"The revolutionaries destroyed six armoured vehciles and killed more than 45 enemy soldiers. The rebels surrounded Gaddafi's forces, who are holed up in a compound."

Al Jazeera's James Bays, reporting from Nalut, described heavy explosions and plumes of smoke rising from the city.

"We can hear small arms and machine guns as well," he said. "Mortars and missles are also being used.

"The opposition holds ground from the Tunisian border to a position where some fighters are [barely] 80km away from Tripoli."