Nato says it has hit key sites in Gaddafi's hometown as world leaders prepare to gather for a key summit in Paris to show support for the rebel-led interim government.
At the same time British jets flew in millions of pounds worth of Libyan banknotes to Benghazi to help stabilise the country fighters attempt to wrap up the conflict.
There were also reports that the National Transitional Council had extended the deadline for the surrender of Gadddafi's hometown of Sirte by one week to September 10.
Elsewhere, claims emerged in a French newspaper that Libya's oil is already being divided up by its international supporters. However the French foreign minister and the National Transitional Council (NTC) denied the deal, calling it a "joke" Reuters reported.
Nato said that at least 13 targets including surface-to-air missile sites, a tank and a rocket launcher were hit in the coastal city of Sirte, Gaddafi's hometown and birthplace, on Wednesday.
In total 34 targets were hit, including some in areas near to Bani Walid and Hun, some of the last remaining loyalist strongholds. More than 140 targets have been hit in Sirte in the last week.
Pro-Gaddafi forces still defending Sirte are refusing to surrender, however. Saif al-Islam, the second son of Colonel Gaddafi, broadcast a statement on the Syrian al-Orouba satellite channel vowing to continue the fight.
In a vitriolic address, the former regime official, who had been widely tipped to take over from his father, warned against an attack on Sirte, saying that 20,000 pro-Gaddafi fighters were ready to defend the town.
"We are going to die in our land," he said. "We would like to assure people that we are steadfast and the commander is doing well.
However his brother Saadi has reportedly been attempting to negotiate his surrender to the rebels.
Ahead of Thursday's conference in Paris more countries including Russia have come forward to recognise the National Transitional Council as Libya's legitimate government.
The Russian Foreign Ministry said in a statement that it “recognises the Transitional National Council as the ruling authority and takes note of its declared programme of reforms that calls for the drafting of a new Constitution, holding of general elections and formation of the government.”
Unfrozen Libyan assets are also starting to reach the country ahead of the summit.
The European Union announced it had lifted sanctions" against 28 Libyan entities, paving the way for more assets to be released.
"This is a clear sign of the EU's determination to do its utmost to support the people of Libya and the interim authorities during the transition," said High Representative Catherine Ashton. "The EU will remain a strong and committed partner for the Libyan people and will continue to examine all possible measures in support of Libya."
French foreign minister, Alain Juppe, said that he now had approval to release more than $2bn of Libyan assets to help rebuild the country.
"We have to help the National Transitional Council because the country is devastated, the humanitarian situation is difficult and there's a lack of water, electricity and fuel," Juppe told RTL radio, according to Reuters.
Late on Wednesday RAF jets flew Libyan bank notes, printed in the UK, worth £140 million to the country, in what is the first wave of just under £1 billion of assets that will be returned to the country in the coming weeks. The funds had originally been frozen in February when the uprising against Gaddafi's regime began.
“Returning money to the Libyan people is part of our commitment to help the NTC rebuild Libya," said Foreign Secretary William Hague. "(It will) help create a country where the legitimate needs and aspirations of the Libyan people can be met.”
Claims have also emerged that Libya's key asset - its oil - it already being divided between the countries that supported the overthrow of Gaddafi.
A French newspaper claimed that it had received documents showing that the rebel council has guaranteed President Sarkozy's country up to 35 per cent of Libya's oil, once production resumes.