COLONEL Muammar Gaddafi could hand over power to a five-man interim government as part of a deal between the Libyan regime and opposition.
Reports in Russia said that diplomatic efforts were concentrating on an agreement that would see each side propose two leading officials to an interim council, with each agreeing on the appointment of a fifth.
Whitehall officials said Russia was engaged in ''frantic'' efforts to end the five-month conflict within weeks.
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William Hague, Britain's Foreign Secretary, conceded on Monday that Colonel Gaddafi could stay in Libya if removed from power.
Diplomats said on Tuesday that both sides must thrash out the ''starting point'' of a settlement.
That would mean an agreement between the regime and the National Transitional Council that Colonel Gaddafi would quit and a new temporary government would oversee a transition to democracy. ''The sticking point is that Gaddafi should agree to leave power,'' a British diplomat said. ''We have to make sure that is done in a way that he could not pull strings behind the scenes.''
Abdul Elah al-Khatib, the UN envoy, is spearheading efforts to set up a formal peace process. Talks in Moscow last week were reported to have secured an outline of a agreement.
Recent rebel advances had prompted Colonel Gaddafi to contemplate stepping down while a deal is possible. Juma al-Gamaty, the rebel representative in London, said his fate was ultimately up to the Libyan people.
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