The UN Security Council is gathering in New York to consider action against Muammar Gaddafi's government in Libya.

A draft resolution before it calls for an arms embargo, a travel ban and an asset freeze in response to its attempts to put down an uprising.

There is also a proposal to refer Colonel Gaddafi to the International Criminal Court on charges of crimes against humanity.

The UN estimates more than 1,000 people have died in the 10-day-old revolt.

The draft resolution before the Security Council is backed by Britain, France, Germany and the US.

The US has already imposed sanctions against Libya.

President Barack Obama signed an executive order on Friday freezing the assets of Col Gaddafi, members of his family and senior officials. The president also said he was also seizing Libyan state property in the US, to prevent it being misappropriated by Tripoli.

Gaddafi's son, Saif al-Islam, told selected journalists, "peace is coming back to our country"

Much of Libya, especially the east, is now controlled by anti-Gaddafi forces but the Libyan leader still holds most of Tripoli, which is home to two million of the country's 6.5 million population.

Friday saw reports of anti-government demonstrators in several areas of the city coming under fire from government troops and pro-Gaddafi militiamen. At the same time, Libyan state TV showed Col Gaddafi speaking from Tripoli's old city ramparts.

"We shall destroy any aggression with popular will," he said. "With the armed people, when necessary we will open the weapons depots. So that all the Libyan people, all the Libyan tribes can be armed. Libya will become a red flame, a burning coal."

Later, Col Gaddafi's son Saif al-Islam said the number of deaths had been exaggerated, though he confirmed the Libyan air force had bombed four ammunition depots. He reiterated his father's statements, blaming Osama Bin Laden's al-Qaeda network for the uprising.

The Associated Press (AP) news agency says it has been told Col Gaddafi's government is arming civilian supporters to set up checkpoints in Tripoli and quash dissent. Residents who spoke to AP by phone on Saturday reported trucks of pro-Gaddafi civilians patrolling the streets.