The chief negotiator of the National Transitional Council, Abdullah Kanshil says that the council is in talks with elder tribal leaders of the town.
He said that the remainder of the 'hardcore' Gaddafi forces were under the command of Mussa Ibrahim, Col. Muammar Gaddafi's former spokesperson.
Kanshil also said Saif al-Islam left the city with some supporters.
Al Jazeera's Sue Turton reports from outside Bani Walid.
