The loyalist troops launched their offensive to seize Gualish, on the road to Tripoli and southwest of the capital, after losing it to the rebels in fierce fighting earlier this month.
Rebels in Gualish prevented regime forces from getting within at least a kilometre (less than a mile) of the hamlet, the correspondent said, adding that they had been reinforced by dozens of insurgents from Zintan, their main base in the west.
Before launching their counter-attack, Kadhafi loyalists sent dozens of civilians into the hamlet to announce their imminent arrival, rebel witnesses told AFP.
The civilians arrived at around 3pm (1300 GMT) in dozens of vehicles from Asabah, a Kadhafi-controlled town 17 kilometres (11 miles) away.
The civilians got to within 200 metres (yards) of a rebel-controlled checkpoint, where they said they had been forced to advance ahead of Kadhafi`s forces to deliver the message that they were about to attack, witnesses said.
The civilians then headed back towards Asabah before Kadhafi`s troops made their own advance on Gualish.
Kadhafi loyalists attacked the hamlet and shelled the region before pulling back as rebels fired rockets at them.
An AFP correspondent reported that over the next three hours there was intense shelling and gunfire rocked the region while NATO warplanes flew overhead.
At least two people were wounded, the correspondent said.
Hundreds of rebels had defended Gualish from a previous loyalist attack on July 13. (*)
Editor: Kunto Wibisono
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