Moammar Gadhafi is reportedly prepared to enter into talks with rebel groups to transfer power in Libya, according to his spokesman, Moussa Ibrahim.

The Associated Press said it received a phone call from Ibrahim, who added that such negotiations would be handled by Gadhafi’s son, Saadi.

Ibrahim said he was in Tripoli and had seen Gadhafi on Friday.

CNN had reported earlier this week that it received an email for Saadi who wrote: I will try to save my city Tripoli and two millions [sic] of people living there... otherwise Tripoli will be lost forever like Somalia. [Without a cease-fire] Soon it will be a sea of blood.

However, Gadhafi’s whereabouts are unknown – some reports claim he is still hiding in the capitol Tripoli, which is now firmly in the hands of the rebels, while others claim he is in his hometown of Sirte, which opposition forces are rapidly approaching.

Regardless of where he is, rebel members said they will not negotiate with Gadhafi unless he surrenders.

An official with the National Transitional Council (NTC) told Reuters: If [Gadhafi] wants to surrender, then we will negotiate and we will capture him.”

The British Foreign Secretary William Hague said Gadhafi's offer, if true, is delusional, since the NTC is already in control of most of the country.

What is needed from the remnants of the Gadhafi regime is the fighting to stop, he told the BBC.

Earlier Monday, it emerged that several members of Gadhafi’s family, including his wife Safia, has crossed into neighboring Algeria.

Separate reports indicated that a son of Gadhafi’s, Khamis, was killed in fighting in the southern part of Libya.