BRUSSELS - NATO denied media reports on Saturday that it had told forces loyal to Libya's Transitional Council to pull back from the town of Bani Walid, in preparation for airstrikes by the military alliance, a NATO official said.

"NATO did not contact the rebel forces to let them pull back from positions on Bani Walid. We did not contact them, we don't have contacts with the NTC forces," the official told Reuters.

Libyan fighters are battling forces loyal to Muammar Gaddafi for control of the desert town -- one of the last remaining strongholds of the former Libyan leader.