Libyan rebels have clinched a crucial deal to enter the besieged city of Bani Walid without fighting, marking another setback for Libyan leader Muammar Gaddafi's forces. According to the Al Jazeera TV network, the deal was reached between the rebels and representatives from the town and under the deal, the rebels will enter Bani Walid on Tuesday. The latest development followed the rebels' announcement on Tuesday that talks over a peaceful handover of Bani Walid, 150 km southeast of Tripoli, had collapsed. On Monday, Libyan rebels exchanged fire with pro-Gaddafi forces as they advanced closer to Bani Walid, a stronghold of the powerful Warfalla tribe, which made up the core of Gaddafi's army and was given top political posts within the regime.The city, along with Sirte on the Mediterranean coast and Sabha deep in the Sahara desert, are Gaddafi's last pockets of support.Meanwhile, the National Transitional Council (NTC) chief Mustafa Abdel Jalil urged Gaddafi loyalists in Sirte, Bani Walid and other cities to surrender within a week, saying that the NTC forces are capable of deploying troops in any city or town and they would use military means after the end of this extension.