Libyan rebels entered Thursday the Abu Salim neighborhood in the capital Tripoli where they earlier said the embattled leader Muammar Gaddafi might be hiding, U.S. TV channel CNN reported.

The rebels besieged some apartment buildings in the neighborhood near Gaddafi's military compound Bab Al-Aziziya earlier Thursday, claiming that the embattled leader and his family members might be holing up in the area.

After the rebels entered the neighborhood later in the day, their speculation proved wrong, CNN said.

The CNN footage showed that the rebels stormed a prison in the Abu Salim neighborhood, chanting slogans such as "God is great" and "Long live Libya" while releasing the prisoners.

The rebels have been hunting for Gaddafi for days after they stormed the capital city. The National Transitional Council offered a bounty of 1.67 million U.S. dollars for the capture or killing of Gaddafi, who has ruled the oil-rich state for 42 years.

The whereabouts of Gaddafi and his sons remained unknown after the rebels overran his military bastion Tuesday following a day of heavy fighting.

Rebels claimed they have so far controlled 90 percent of Tripoli, but intense fighting was still going on in many parts of the city between the rebels and Gaddafi's loyalists.