Libya's interim government forces say they have pro-Gaddafi troops "cornered" in two small areas of Sirte.
One commander told Reuters they had backed the loyalists into about 2 sq km (0.7 sq mile) of land near the sea.
But heavy fighting continues in Sirte, the home town of fugitive former leader Col Muammar Gaddafi, as the loyalists put up fierce resistance.
The National Transitional Council (NTC) says that once Sirte falls, they will declare national liberation.