Besieged Misratah has continued to be bombarded by rockets and automatic weapons, despite claims Colonel Muammar Gaddafi's army had fled the Libyan city.
While rebels claim they have retaken 80% of the coastal town, which is hemmed in on three sides by Gaddafi forces, hostilities continue, according to Sky's Alex Crawford, who is reporting from Misratah.
"Whatever they claim the shelling goes on, despite the claims," Crawford said.
On Sunday rebels in the besieged town said at least eight people were killed and more than 50 injured in ongoing clashes with government forces.
The country's deputy foreign minister had said the army suspended operations against rebels but not left the city as the regime negotiated with local tribes for a peaceful solution.
"The armed forces have not withdrawn from Misratah," Khaled Kaim said.
"They have simply suspended their operations. The tribes are determined to solve the problem within 48 hours... We believe that this battle will be settled peacefully and not militarily."
Libyan expert Adel Darwish believes the next phase of fighting will involve more skirmishes between rebels and government forces, making it harder for Nato to assist with combat air support.
Libya Expert: Gaddafi Playing Political Game
Meanwhile, civilians who have cowered during the fighting are beginning to venture out in the debris-strewn streets, in search of food and clothing.
"In some parts of the city there is no home untouched and the shelves in the city's stores are emptying as supplies run down," Crawford said.
"There is still a fair amount of unease," Crawford said.
Save The Children said children as young as eight who are being cared for in Libyan refugee camps had reported being sexually assaulted by fighters during the conflict, but the charity could not say which side they came from.
Rebel spokesmanMisratah is free, the rebels have won. Of Gaddafi's forces, some are killed and others are running away.
The stand-off in Misratah follow its bloodiest day of fighting, with 28 dead and 100 wounded, according to doctor Khalid Abu Falra at Misratah's main private clinic.
He said that compared to an average daily death toll of 11.
On Saturday a rebel spokesman in Misratah had claimed: "Misratah is free, the rebels have won... Gaddafi's forces, some are killed and others are running away."
Rebels in Misratah remain upbeat after intense fighting
Elsewhere in the country, at least three explosions were heard in Tripoli as Nato aircraft flew over the capital.
Mr Kaim said Nato airstrikes had hit targets in Sirte, Gharyan, Aziziyah, Tripoli and Hira.
The Pentagon said the first US Predator drone to fire over Libya had hit a rocket launcher near Misratah on Saturday.
A number of Gaddafi's soldiers have been captured by rebels in Misratah
But after a month of air support it is still unclear which side holds the upper hand and fighters loyal to Col Gaddafi were said to have captured the town of Yafran in Libya's Western Mountains.
Rebels in that region captured a border post two days ago and had begun to rush badly-needed supplies to towns under attack, saying they were cheered by reports from Misratah.
"Gaddafi brigades seized control of the (Yafran) town centre and we are currently in nearby villages," a rebel fighter told al Arabiya television.
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