Libyan troops and rebels are battling near Libya's western town of Zlitan, where rebel fighters are trying to wrestle control of the area from government forces.

Reports from the scene are scarce, but the French News Agency quotes a rebel military spokesman Tuesday as saying opposition fighters have advanced closer to the town's center. But al-Jazeera reports that several rebel fighters there say they were taken by surprise and pulled back when troops launched an offensive on their positions just outside the town.

The Reuters news agency reports hospital workers saying the clashes have killed seven rebels and wounded more than 60 others.

In a separate development, Venezuelan President Hugo Chavez went against a widening international trend Monday, saying his country would not recognize the opposition Transitional National Council as the interim government of Libya. He called the TNC a “group of terrorists.”

More than 30 countries, including the United States, France and Britain, have recognized the opposition council as Libya's interim government.

Mr. Chavez has repeatedly condemned the international military operation in Libya. NATO has enforced a no-fly zone and carried out airstrikes since March under a United Nations Security Council resolution to protect civilians from attacks by Moammar Gadhafi's government forces.

Also Monday, France said it has released $259 million in frozen Libyan funds to the TNC for humanitarian needs.