The Libyan government has rejected the conditional ceasefire offer made by the rebels as "mad," Al Jazeera television reported.
The statement comes after Abdul Jalil Ibrahim, head of the rebel Transitional Nation Government, said on Friday that a truce was negotiable on condition that Col Muammar Gaddafi's troops besieging the rebel-held cities withdrew.
But he added that the rebels would not go back on their demand that Gaddafi and his family must leave Libya.
Government spokesman Moussa Ibrahim said the demands were "impossible."
"They are asking us to withdraw from our own cities. If this is not mad then I don't know what this is," Ibrahim said. "We will not leave our cities. We are the government, not them."
He described as a "crime against humanity" a coalition air strike on Friday on a government convoy near the oil town of Brega that killed seven civilians.
NATO officials said they were making inquiries.
Heavy fighting has continued near Brega in the east and Misurata and Az Zintan in the west.
MOSCOW, April 2 (RIA Novosti)