Colonel Gaddafi's son Saif has told Sky News his father is still in control of Libya and has hit out at remarks made by David Cameron claiming he just "wants to be a hero".
Colonel Gaddafi's most high-profile son referred to the Prime Minster's response to the Libyan crisis as "a joke" and said "we are not listening to him".
Saif Gaddafi also refused to accept the Libyan government has lost control of the east of the country.
He called the rebels occupying the city of Zawiyah "terrorists" and reiterated his stance that he would live and die in Libya.
Sky political correspondent Sophy Ridge
Warning countries who could be considering military action, Mr Gaddafi said the use of force against Libya was "not acceptable" but claimed: "We are not afraid."
He said the regime's priority was to restore peace and security in Libya.
The British-educated son is the most visible of Col Gaddafi's children and has been acting as a spokesman for the regime.
He also took the opportunity to hit back at comments by US ambassador to the UN Susan Rice, who claimed his father was "delusional" and "unfit to lead".
Claiming Ms Rice was "unfit to comment on Libya" he said it was "not her business to talk about Libya" as she is not Libyan.
David Cameron's spokesman has said the Gaddafis are "losing all credibility and authority" speaking on the Libyan crisis.
Foreign Secretary William Hague told Sky News he had spoken to Libyan Foreign Minister Musa Kusa to stress the need for an immediate end to the violence.
Libya Crisis: Latest Pics 
People flee as fighting continues and Colonel Gaddafi clings on.
But he said the Libyan government's line is still that the situation is different to what we have seen and that they have not been killing citizens.
Saif Gaddafi's comments come as a spokesman for Libya's Ministry of Information accused the British PM of leading a campaign for regime change in Libya and neighbouring countries.
Khaled al Koabi claimed to have information that Britain is "planning to carry on some activities that can create an environment of instability in some Arab countries, for the sake of changing regimes".
He also called on British MPs to oppose what he called the Government's "dangerous behaviour".
Mr Koabi said: "From here I call upon the British society and the British House of Commons to take steps and move against the British Prime Minister, so that Britain will not find herself in a similar situation as in 2003 in Iraq."
The accusation follows Mr Cameron's statement to the House of Commons in which he said he has not ruled out military action in Libya.
The Pentagon has said it is moving naval and air forces into positions near Libya in case military intervention is required.
Defence Secretary Robert Gates said they are sending 400 marines and two naval ships to the Mediterranean to help with emergency evacuations and humanitarian relief.
But he said there are no grounds for the use of force in the UN Security Council resolution.
Admiral Mike Mullen, chairman of the US Joint Chiefs of Staff, said the administration was looking at a full range of options but had not yet made any decisions.
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