Three people died and 10 others wounded in clashes between forces loyal to Libyan leader Muammar Gaddaffi and the rebels in eastern oil town of Brega, medical source from a hospital in the town of Ajdabiyah, some 60- 70 km from Brega, told Xinhua.

Rebels told Xinhua on Wednesday that the government forces had withdrawn from Brega after fierce overnight clashes with the rebel fighters.

Gaddaffi's troops and the anti-government fighters have traded fire in Brega and Ras Lanuf in the past two weeks since the UN passed a resolution which imposed a no-fly zone over Libya.