A former British government minister held talks with Libya's foreign minister in the Tunisian capital, one of the participants in the meeting told Reuters on Sunday.

Britain's government denied it had any contact with officials loyal to Libya's Muammar Gaddafi, but the meeting took place against a backdrop of mounting Western pressure for Gaddafi's entourage to negotiate a way out of the conflict.

Lord David Trefgarne, a junior government minister in the 1980s, who is chairman of the non-governmental Libyan British Business Council, met Libyan Foreign Minister Abdelati Obeidi in Tunis on Saturday, said the participant.

"I can confirm that the meeting took place. It lasted for over an hour. Neither us of was authorised to have the meeting, either by the council or by the British government," said Oliver Miles, a former British ambassador to Libya and deputy chairman of the council.

Asked if the meeting was connected to attempts to negotiate a settlement to the Libya conflict, Miles declined to comment.