Libyan rebels said on Saturday that they have retaken the eastern town of Ajdabiya.
The town is strategically important as it is in one of Libya’s key oil-producing areas.
Ajdabiya had previously been held by Colonel Gaddafi’s forces but it has been subjected to heavy bombardments by coalition forces since Thursday.
Both sides exchanged gunfire before today’s breakthrough for the rebels.
The AFP news agency reported that the roads are now clear of Gaddafi loyalists and that the rebels are setting up new positions 40 kilometres to the west.
It is the first town to fall back into rebel hands since forces led by the US, Britain and France launched a military campaign on March 19th to enforce a UN-backed no-fly zone.