Helicopter-borne mercenaries fighting for Libyan leader Muammar Gaddafi fired on protesters attending a funeral in the western city of Misrata on Saturday, a witness told AFP.

The mercenaries had been airlifted to Misrata, Libya's third city situated some 150 kilometres (90 miles) east of the capital Tripoli, the witness said with the sound of heavy weapons fire audible in the background.

They then opened fire on the relatives of the victims who were about to enter a mosque, he said, adding the mercenaries also shot at a building that housed an opposition-run radio station.

The witness also said the local chieftain in Misrata was contacted on the telephone by Gaddafi's aides, who proposed establishing an independent state in the city on the condition that it does not attack Tripoli.

"We do not have many weapons in Misrata and we are surrounded by two cities that support the regime -- Zliten and Sirte," he added.

Yesterday, a Misrata resident said the city had been deserted by loyalists of the Gaddafiregime, but that clashes at a local air base claimed the lives of 30 rebels.

"The 'February 17 Revolution' movement have positioned containers and sand bags" to protect the city, according to the resident, an opposition supporter.

Misrata has for several days been the scene of heavy fighting between protesters and Kadhafi loyalists "supported by African mercenaries", according to several witnesses.