TRIPOLI (AFP) - Libyan leader Moamer Gaddafi said Friday in an audio message aired on state television that Nato will be defeated and fail in its bid to bring about regime change in Libya. "They will be defeated, NATO is bound to be defeated," the Libyan leader said in the speech delivered as the television showed live footage of a demonstration by thousands of regime supporters in Tripoli's Green Square. "We are determined to change nothing in our country other than by our own free will, not because of the alliance's planes... We are resisting, we are fighting. "If they come to the ground, we will wait for them, but they are cowards, they will not dare," he said in reference to NATO's insistence it will not deploy ground troops on Libyan soil in line with a UN resolution. Gaddafi called on Libyans to prepare to liberate their country: "Get ready men and women to free Libya inch by inch." Meanwhile, ten people were killed and 40 wounded when forces loyal to Libyan leader Moamer Gaddafi pounded the western rebel-held port city of Misrata with Grad rockets, a rebel official told AFP on Friday. Rebel spokesman Ahmed Hassan said all the victims of the attack were civilians, and that they were hit when rockets slammed into the western and eastern gates of the city. Meanwhile, Libya's rebels denied Friday they are engaged in negotiations with Moamer Gaddafi's regime as they came under deadly rocket fire in Misrata but seized a key stretch of road towards the Tunisian border. Russian envoy Mikhail Margelov, speaking one day after visiting Tripoli, had declared earlier that the strongman's camp had forged multiple contacts with the Libyan opposition in a number of European capitals. "I can assure you there is and there was no negotiation between the NTC and the regime," Mahmud Jibril, the head of international affairs in the rebel National Transitional Council, said in Naples, Italy. At a joint news conference with Italian FM Franco Frattini, Jibril said that were negotiations to take place, the NTC would "announce it out of commitment to our friends all over the world". "Italy has always encouraged the search for contacts and a solution based on dialogue but unfortunately the regime has not sent any positive response and has always demanded that Gaddafi's remaining in power be guaranteed," he said. Margelov, who held talks with the rebels in their Benghazi stronghold last week, said Friday that representatives of Gaddafi had made contact with the rebels in European capitals including Berlin, Paris and Oslo. The Russian envoy said the Libyans needed an opportunity to negotiate, "a mechanism that brings them together and if the international community can provide such a mechanism that would be a great help". "What we have to do now is to support all the efforts inside Libya," said Margelov, who is seeking a mediating role in the Libyan conflict. "Political crisis cannot be resolved by military means." In Tripoli on Thursday, Margelov had said that the contacts had only taken place in Paris, although he did not disclose the nature of the supposed negotiations. France said it had no knowledge of the negotiations. "If there have been direct contacts, we're not involved and we didn't set them up," foreign ministry spokesman Bernard Valero said. Libyan Prime Minister Baghdadi al-Mahmudi said on Thursday Gaddafi's departure was a "red line" that cannot be crossed, despite growing international calls for him to quit and the armed insurrection against his 41-year rule. An NTC official in the opposition stronghold Benghazi in eastern Libya told AFP on Friday that their position was unchanged. "Gaddafi must go. Anyone from the rebel side who negotiates his staying in power would immediately have an NTC arrest warrant issued against him," the official said, on condition of anonymity. And NATO on Friday slammed as "cynical" an offer in an Italian newspaper interview by Moamer Gaddafi's son, Seif al-Islam, that the regime in Tripoli was ready to organise internationally supervised elections. "Once again, it is an instance of what I would call a cynical PR ploy," said alliance spokeswoman Oana Lungescu during a news briefing on the military campaign. "It is hard to imagine that after 41 years in which Gaddafi abolished elections, the constitution, political parties, trade unions... (that) overnight a dictator would turn into a democrat." On the battle front in Misrata, forces loyal to Gaddafi killed 10 people and wounded 40 when they pounded the western rebel-held port city with a volley of Grad rockets, a rebel official told AFP. Rebel spokesman Ahmed Hassan said all the victims of the attack were civilians, and that they were hit when rockets slammed into the western and eastern gates of the city. The body of one of the dead, a woman, was found in the rubble of her house, he said. Hassan said Misrata was still the target of near daily bombardment by Gaddafi loyalists, and that there had been no air strikes by the NATO-led coalition on the embattled strongman's forces on Friday. Elsewhere, a road linking the towns of Zintan and Yafran was under the complete control of the insurgents, said an AFP correspondent who reported the route was dotted with destroyed tanks and abandoned government vehicles. The seizure of the road linking Zintan and Yafran, a key sector of the route to the border with Tunisia, came two days after the rebels overran the nearby villages of Ghanymma, Lawania and Zawit Bagoul. Earlier, two loud blasts shook Tripoli following a series of more distant explosions, as NATO warplanes constantly overflew the Libyan capital, an AFP reporter said. The warplanes on Thursday destroyed an apparently empty hotel, the Wenzrik, in central Tripoli near administrative buildings and Libya's state broadcaster, an AFP reporter taken to the site said. Libyan Deputy Foreign Minister Khaled Kaaim later denounced what he called a "barbaric and premeditated raid by NATO on civilians." In a statement Friday, NATO said key hits the previous day included a surface-to-air missile launcher near Tripoli, seven truck-mounted guns and three tanks near Brega and five truck-mounted guns in the Misrata area. In Geneva, the UN Human Rights Council on Friday extended a probe into alleged violations in Libya, asking investigators to give an update on the situation at the UN body's September session.