Libyan leader Muammar Gaddafi has agreed to a peace deal brokered by the African Union which proposes immediate end of fighting in the North African country and a plan to allow international forces to take up peacekeeping job.

However it's not clear if the opposition, which has long been demanding nothing less than Gaddafi's ouster, will accept the new peace offer by the embattled leader.

Leader Moammar Gadhafi expressed his full confidence in the African Union and its ability to successfully carry out the peace process in his country, the AU said in a statement on Monday.

The four-pronged deal hammered out by Gaddafi and the African Union negotiators also includes Gaddafi's commitment to facilitate humanitarian assistance, protect foreign nationals in the country and start talks with the Libyan opposition.

It envisages the adoption and implementation of political reforms necessary for the elimination of the causes of the current crisis. It remains to be seen how the rebels, who have been demanding nothing less than Gaddafi's departure, will react to the latest offer. The official forces had announced unilateral ceasefire in the past, but had backtracked.

The rebels have lost much ground in a see-sawing struggle for the control of the key oil regions of the country since the start of the armed rebellion. However, they made some advance lately, with the recapture of Ajdabiya.

Meanwhile, the battle for the control of Misrata went on, with the rebels putting up resistance with the help of the NATO forces.
Gaddafi made at least two public appearances over the weekend - a visit to a school in Tripoli on Saturday and another on Sunday when the negotiations with the AU were under way.