According to the chief negotiator for Libya’s Ruling interim council, Seif al-Islam was said to be sighted in Bani Walid, along with another regime strongman, on Wednesday.
"Seif, he returned to the city, maybe, he was sighted yesterday and maybe there is another big fish we don't know who's he including Moussa Ibrahim," Abdullah Kinshil said.
Tribal leaders loyal to Muammar Qaddafi in Bani Walid refuse to surrender to forces loyal to the National Transitional Council (NTC), an event that is likely to result in another round of fighting.
"He left, because Bin Walid, as you will see, is near a lot of valleys and mountains, but definitely when he gets out of the city it doesn't mean he left the area, because there are a lot of caves. He passed through, he was sighted yesterday, and he passed through an area in the city," Kinshil added.
On the same night, a brigade of anti-Gaddafi fighters arrived in the desert town.
"There is an advance of troops to the frontline, an infantry brigade, and they will be at the frontline," said a commander known as Salah.
Residents in Bani Walid continue to support the Qaddafi regime, some flying green flags on their houses. In addition, a large portrait of the wanted fugitive in his military uniform is on display in the central square tower.
Residents claim that Qaddafi loyalists are driving recklessly through the streets yelling out insults from the back of their pickup trucks.
However, rebel fighters say they want to reach a peaceful agreement and do not want to start another battle that will lead to bloodshed.