Rebel military spokesman Col. Ahmed Bani said
the rebels have liberated Brega and have taken over the refineries in the industrial city.
"We have liberated Brega and all of it is under our control," Bani told The Associated Press on Saturday. "The fighters are in the port and taken the refineries."
There were reports that at least two rebels were killed and some 15 others were injured during the clash with Gadhafi security forces.
Brega has been taken and retaken by rebels in the past after soldiers loyal to the regime of Gadhafi have mounted continued and sustained efforts in protecting the industrial city where oil refining plants are located.
The capture of the city has been a major victory for the Benghazi-based rebels who are being supported by NATO forces following the US calls on Gadhafi to step down
from power which later was supported by Western allies including Britain, France and Germany.
Russia which has been critical of the NATO air strikes has likewise called for Gadhafi's resignation.
'Yes, we are ready to admit... he needs to go,' Minister Sergei Ryabkov said
on the sidelines of the G8 summit in northwestern France.
'We believe that Colonel Gaddafi has forfeited legitimacy due to his actions... indeed we need to help him go,' he added.
With the capture of Brega, the Benghazi-based rebel forces are now moving closer to the capital city of Tripoli where they are expected to confront Gadhafi's loyal security forces who are well entrenched in strategic areas of the capital.
A bit of good news for the rebels was the report saying the No.2 man of Gadhafi in Tripoli has defected to the side of the rebel forces.
Rebels said that Abdel-Salam Jalloud, a close Gadhafi associate who was once the No. 2 top regime official could help the rebels if indeed he has defected and added Jalloud could provide valuable information about Gadhafi's inner circle.