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David Cameron has confirmed that Britain will step up the campaign against Colonel Gaddafi by sending Apache helicopters to Libya.
The decision follows claims that the embattled leader is becoming increasingly paranoid and is "on the run".
MI6 told the Prime Minister it has discovered that Col Gaddafi's behaviour is becoming more erratic as Nato's airstrikes take their toll.
Explosions have been heard near the dictator's compound in Tripoli for four nights in a row this week but he has not been seen since May 11.
Sky's foreign affairs correspondent Lisa Holland, in Tripoli, said she heard five loud explosions coming from that area on Thursday night.
It is believed Col Gaddafi is moving between hospitals in the capital nightly in a bid to evade the missiles.
His youngest son, Saif al Arab, and three of his grandchildren were killed in an airstrike a few weeks ago.
The new information is understood to have convinced Mr Cameron that the time is right to "turn the screw".
Mr Cameron, Defence Secretary Liam Fox and military chiefs have agreed to put four Apache attack helicopters at the disposal of the Nato operation, alongside existing warplane deployments.
The advantage of the aircraft is that they can carry out strikes at much closer quarters, reducing the potential for collateral damage and allowing a wider range of targets to be taken on.
They are expected to be used against Col Gaddafi's troops in built-up areas of Misratah.
The Apaches could begin operating from HMS Ocean, which is in the Mediterranean, almost immediately.
The situation in Libya was one of the main topics at a meeting of G8 leaders in France on Thursday.
David Cameron and French president Nicolas Sarkozy agreed that the pressure on Gaddafi must be increased.
Mr Sarkozy has already authorised the use of 12 French attack helicopters, flying from the amphibious assault ship Le Tonnerre.
Meanwhile, RAF Tornado and Typhoon aircraft have attacked a military vehicle depot in the Libyan desert.
The Chief of Defence Staff's spokesman, Major General John Lorimer, disclosed the strike as he gave details of recent operations.
"A major target for the Royal Air Force contingent yesterday was the large military vehicle depot at Tiji in the west of Libya, which has been supporting regime attacks on the civilian population in the Djebel Nafousa region, south west of Tripoli," he said.
SKYNEWS
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