Rebels take Martyr's Square in Zawiyah, as noose tightens around Col. Gaddafi

The key town was captured following a fresh assault as opposition forces used new weapons and ammunition supplies to take the Square.

There was jubilation as the iconic spot fell, with celebratory gunfire ringing out and delighted rebels circling the area in their cars.

The rebels now believe they have loyalist forces on the run and have effectively taken control of the whole town.

Discarded uniforms of Gaddafi soldiers lay on the ground and traditional Libyan flags - a symbol of the regime - have been ripped down.

The successful assault comes around five months after the town first managed to break free from the control of Gaddafi loyalist fighters.

Control of the strategically important spot will restrict supply routes for Gaddafi forces, as Zawiyah is located between Tripoli and Tunisia.

:: Pictures: Libyan rebels renew Zawiyah assault

Until the recent fighting, the Gaddafi regime had touted the town as an example of where people were living happily under the dictator's rule.

The opposition troops are now engaged in what they hope will be the final push to remove all pro-Gaddafi troops from the town.

They have been fighting loyalists for the past few days but the momentum increased on Thursday.

Nato dropped bombs early Thursday evening but more Gaddafi troops had moved in by the time the rebels returned.

This meant they had to launch a new round of fighting inside the Square on Friday, using reinforcements and more weapons.

They even commandered a Gaddafi tank and drove it down one of the main streets before starting to fire towards the Square.

Dead loyalist soldiers, apparently of African descent and possibly mercenaries, could be seen in the middle of the site.

In March, during the first siege, there was no cohesive rebel force and they lacked the weapons they needed to defend themselves.

But now, their numbers have been bolstered by thousands of extra men and they are believed to have been supplied with arms by foreign allies.

They are no longer in a defensive position and are pushing forward - with no apparent evidence of being under attack from loyalist tanks.

It is unclear how the situation will develop from here, with Gaddafi and his family increasingly cornered in Tripoli.

The leader could instigate a bloody fight to the death by refusing to leave despite his power base crumbling away.

However, there are reports that planes are already on standby to remove him and his family.