Cairo, May 29 (IANS/RIA Novosti): Libyan leader Muammar Gaddafi is ready to relinquish power on the condition that he and his family would not be prosecuted, Arab newspaper Al Sharq Al Awsat reported Sunday.

Gaddafi's son Saif al-Islam is heading a group of Libyan government officials who are trying to find a solution to the crisis that envisages his father's dignified exit from power, the paper said, quoting a source close to the Libyan leader.

In public statements, Gaddafi and his associates have always rejected the idea of the leader's resignation.

However, there are unofficial channels of communication, through which these issues are being discussed, the paper said.

Gaddafi was interested in quitting power in a dignified manner, which implies that neither he nor his family must be prosecuted. He is also seeking immunity from international persecution, the paper said.

Inside Gaddafi's family and his inner circle, however, there was no agreement on this issue. Some say Gaddafi must continue fighting to the bitter end while others believe that the time has come for him to quit, the paper said.