Libya's defense minister said Monday that the army has no control over Bani Walid, one of the last bastions of Moammar Gadhafi's regime, and that armed groups there prevent families from returning home.

"The chief of staff has no control over the town and therefore armed men are able to prevent families from coming back," Osama al-Jueili told journalists in Tripoli, adding that "gunmen" hold a checkpoint leading to the town.

Libyan pro-government forces on Wednesday seized control of Bani Walid, one of the last bastions of Moammar Gadhafi's ousted regime, an AFP correspondent in the town said.

Hundreds of fighters, mostly former rebels from the rival town of Misrata, converged on the center of Bani Walid, firing in the air to celebrate and hoisting the Libyan flag on abandoned public buildings, he said.

Libya on Tuesday celebrated the first anniversary of its "liberation" from the regime of Moammar Gadhafi, even as fighting flared in a former bastion of the slain dictator.

On October 23, 2011, just three days after Gadhafi was captured and killed in his hometown Sirte, the transitional authorities declared the country's liberation, formally ceasing hostilities.

Libya's top official headed for Bani Walid on Thursday to try to persuade its tribal and military leaders to allow a peaceful army takeover, a day after clashes in the former rebel bastion killed 11 people.

Ex-rebel combatants linked to the army, including many from the rival city of Misrata, attacked the oasis town on Wednesday in fighting that left at least 11 dead and dozens wounded, according to sources in both camps.

At least eleven Libyans were killed and scores wounded in clashes on Wednesday when ex-rebels linked to the army attacked Bani Walid, a former bastion of dictator Moammar Gadhafi, local sources said.

"Clashes today left four dead and 19 wounded in the ranks of Libya Shield," said a commander of the brigade which operates under the banner of the army.

Fighters in Bani Walid say they are ready to lay down their lives to defend the besieged town of jagged hilltops which gave shelter last year to loyalists of slain Libyan leader Moammar Gadhafi.

"They'll have to march over our dead bodies to reach Bani Walid," said commander Salem Waer who is leading military operations in the oasis town circled by armed groups operating under orders of Libya's new authorities.

One person was killed and five others wounded during clashes near Bani Walid, a final bastion of supporters of slain Libyan leader Moammar Gadhafi, local leaders said Tuesday, warning of looming disaster.

"A resident of Bani Walid was killed in combat against armed groups from the city Misrata," Bani Walid spokesman Massud al-Waer told AFP.

NATO has no intention of launching new air operations in Libya despite deadly clashes taking place in a former bastion of late dictator Moammar Gadhafi, the alliance chief said Thursday.

Fighting erupted in the oasis town of Bani Walid earlier this week, three months after NATO ended its air war in Libya and declared it had accomplished its mission to protect the civilian population.

Libyan Defense Minister Osama Juili said Wednesday that the oasis town of Bani Walid was under government control as he toured the former Moammar Gadhafi bastion days after deadly clashes.

"The town is in the control of the Libyan government," Juili told reporters. "The problem that started has been resolved," he added, referring to clashes on Monday in which at least five people died.

Libya's interim government met on Tuesday to discuss the deadly clashes in the former regime's bastion of Bani Walid as sources said calm returned to the town.

"The government is in a meeting to discuss the issue of Bani Walid," a source in the administration of Prime Minister Abdul Rahim al-Kib told Agence France Presse.