Muammar Gaddafi was staying in a town on the Libyan-Algerian border waiting for permission to enter Algeria, the French-language newspaper El Watan reported Wednesday in its online edition, quoting sources from the Algerian president's office.
The report said Gaddafi was in Ghadames, an oasis town in west Libya, accompanied by the rest of his family.
Gaddafi had tried to negotiate with the Algerian authorities on his entry into Algeria, the report said, adding that Algerian President Abdelaziz Bouteflika refused to answer Gaddafi's phone calls.
Instead, a presidential aide apologized to Gaddafi and told him Bouteflika was busy, the report said.
The report can not be immediately confirmed.