TRIPOLI - Libya's rebel government will not negotiate with Muammar Gadhafi unless he surrenders, a top National Transitional Council official told Reuters on Sunday, adding rebel authorities did not know Gadhafi's whereabouts.

"No negotiation is taking place with Gadhafi," said Ali Tarhouni, the rebel official in charge of oil and financial matters. "If he wants to surrender, then we will negotiate and we will capture him."

The Associated Press reported earlier that Gadhafi's spokesman, Moussa Ibrahim, had said Gadhafi had offered to negotiate to form a transitional government with the rebels and that Gadhafi was still in Libya.