Libyan leader Muammar Gaddafi has reportedly accepted an offer of mediation from Venezuelan President Hugo Chavez while an opposition group has rejected it, according to a report.

Sources in Caracas told Al Jazeera on Thursday that Venezuelan foreign minister Nicolas Maduro spoke about the idea with the head of the Arab League, Amr Moussa.

Details of the plan could be announced by the Arab League later today, according to the report.

Meanwhile, the head of the opposition National Libyan Council, Mustafa Abdel Jalil rejected any possible talks with Gaddafi, according to the report. He said no one had contacted him about the Venezuelan offer.

Chavez said Thursday that the offer was being made through his ALBA trade bloc of eight South American and Caribbean nations. The mediation commission would also involve European nations. Specific nations were not named.

I believe there needs to be a call to act in a political way, Chavez said in a released statement.

He said the situation in Libya had wider implications.

[I]n Libya's case, there's a threat of an even bigger tragedy, or a civil war or an invasion that could end up in another international war that could extend itself throughout northern Africa.

He said the commission would go to Libya to converse with the Government and the leaders of the opposition.

We are not involving ourselves in an internal situation but advocate for a peaceful exit, he said.

U.S. Secretary of State Hillary Clinton said on Tuesday that all possible options for action were being considered to resolve the situation. She has previously said the U.S. has been reaching out to different Libyans who are attempting to organize against the government.

Among the options the U.S. is actively considering is establishing a no-fly zone, according to White House spokesman Jay Carney. Secretary of Defense Robert Gates said on Thursday that the U.S. military could establish a no-fly zone if it was authorized to do so. He said it would require an attack to destroy Libyan air defenses and called it a big operation in a big country.

No military action has been authorized by the United Nations Security Council, which includes permanent members China, France, Russia, the United Kingdom and the United States, along with other non-permanent members.

Security Council consensus would not be required for military action if a coalition of willing nations agreed to it. The United States and allies established no-fly zones over Iraq in from 1992 until 2003 as part of efforts to protect Kurds in the country.

The Security Council has only approved targeted sanctions to freeze assets belonging to Gaddafi and his family as well as other individuals. Sanctions also include an arms embargo, a travel ban for some officials. The Council also authorized the provision of humanitarian aid.

US. military ships carrying hundreds of marines are making their way to the Mediterranean to provide support for a humanitarian mission as Libyan refugees have been fleeing into neighboring Egypt and Tunisia.