Citing a military source, Libya's official TV said on Sunday the eastern town of Brega has been cleared of rebels.

The source told the TV that Brega has been purged of "the armed gangs", while Al-Arabiya news network said dozens of rebels withdrew from the town amid heavy shelling launched by government forces loyal to leader Muammar Gaddafi.

Rebels' abandonment of Brega came after they lost the town of Ras Lanuf, 615 kilometers southeast of the capital Tripoli, which could be seen as a major setback for opposition forces. A week ago, rebels reportedly recaptured the eastern half of the country and were planning for moving to Gaddafi's hometown of Sirte in their way to the capital.