TRIPOLI: The Libyan government Sunday renewed its offer to hold a vote on whether Muammar Gaddafi should stay in power, a proposal unlikely to interest Gaddafi's opponents but which could widen differences inside NATO. Pressure is growing from some quarters within the alliance to find a political solution, three months into a military campaign which is costing NATO members billions of dollars, has killed civilians, and has so far failed to topple Gaddafi. Moussa Ibrahim, a spokesman for Gaddafi's administration, told reporters in Tripoli the government was proposing a period of national dialogue and an election overseen by the United Nations and the African Union. “If the Libyan people decide Gaddafi should leave he will leave. If the people decide he should stay he will stay,” Ibrahim said. But he said Gaddafi would not go into exile whatever happened. “Gaddafi is not leaving anywhere, he is staying in this country,” Ibrahim said. The idea of holding an election was first raised earlier this month by one of Gaddafi's sons, Saif Al-Islam. The proposal lost momentum when Libyan Prime Minister Al-Baghdadi Ali Al-Mahmoudi appeared to dismiss it. At the time, it was also rejected by anti-Gaddafi rebels in the east of Libya, and by Washington. Many analysts say Gaddafi and his family have no intention of relinquishing power. The election proposal could find a more receptive audience this time around, especially after a NATO bomb landed on a house in Tripoli on June 19, killing several civilians. After that incident, alliance-member Italy said it wanted a political settlement, and also said that the civilian casualties threaten NATO's credibility. Rebels now control the eastern third of the country, and some enclaves in the west. They have been unable though to break through to the capital, leaving Western powers banking on an uprising in Tripoli to overthrow Gaddafi. The Libyan leader suffered a propaganda defeat when four members of the national soccer team and 13 other football figures defected to the rebels, the rebel council said. A momentary thaw in the fighting allowed the Red Cross to reunite people caught on the wrong side of the conflict with their families. ‘Gaddafi to stay out of peace talks' African leaders Sunday welcomed Gaddafi's decision to stay out of talks to end Libya's conflict. The African Union panel on Libya meeting in the South African capital Pretoria said Gaddafi would not participate in peace talks, in what appeared to be a concession. The panel “welcomes Col. Gaddafi's acceptance of not being part of the negotiations process,” AU Peace and Security Commissioner Ramtane Lamamra said, reading a prepared statement issued after four hours of talks.