The convoy entered the Sahelian country late Monday and drove through the city of Agadez, a stronghold of the former Tuareg rebellion Kadhafi once supported, a local military source said on condition of anonymity.
"I saw an exceptionally large and rare convoy of several dozen vehicles enter Agadez from Arlit... and go towards Niamey," he said. "There are persistent rumours that Kadhafi or one of his sons is travelling in the convoy."
US State Department spokeswoman Victoria Nuland said senior officials of the ousted regime were in the convoy, but added: "We do not believe that Kadhafi himself was among them."
The Libyan strongman has not been seen since rebels stormed Tripoli on August 20, although as recently as Thursday he aired audio messages calling on his supporters to prepare for guerrilla war.
"We don`t have any evidence that Kadhafi is anywhere but in Libya at the moment," Nuland said, adding that she had no information about other members of his family.
The new Libyan leadership in Tripoli simply said it knew of a convoy crossing into Niger.
"We can confirm that around 200 cars crossed from Libya to Niger, but we can`t confirm who was in this convoy," Jalal al-Gallal, spokesman for the National Transitional Council (NTC), told AFP.
"These types of convoys usually carry Kadhafi or one of his sons," he added.
The nearest border to Arlit, a mining town north of Agadez, is with Algeria where Kadhafi`s wife, daughter and two of his sons found refuge last week.
Speaking from Algeria, Niger Foreign Minister Mohamed Bazoum denied however that Libya`s fugitive former strongman was in the convoy and that it involved as many as 200 vehicles.
"It is not true, it is not Kadhafi and I do not think the convoy was of the size attributed to it," he told AFP by phone.
When asked whether Kadhafi was welcome in Niger, the minister said that decision was the presidency`s but added: "Kadhafi in Niger could cause some problems."
In Niamey, Niger`s Interior Minister Abdou Labo told journalists that the Kadhafi loyalists were welcomed "for humanitarian reasons".
As for possibly offering Kadhafi asylum, Labo said "when that question arises, we will let you know".
Neighbouring Burkina Faso meanwhile said late Tuesday it would not grant the deposed Libyan leader asylum, even as reports said the convoy was heading to Ouagadougou.
"We have no such information at the moment. Obviously, if they cross our border, we will find out... We are simply going to monitor the situation throughout the day," a government official said.
France, which has been spearheading NATO operations to help rebels get rid of Kadhafi, also said it had no reason to believe that the fallen dictator was in the convoy.
On Monday, a Nigerien government official said another, smaller convoy of 11 high-profile Libyans had arrived in Niger.
"Moamer Kadhafi was not part of the delegation that arrived in Niger, which consisted of three Nigeriens: Agaly Alambo and two of his brothers and 11 Libyans, among them Mansour Daw," the government source said.
Daw was Kadhafi`s feared head of internal security and Alambo a historical leader in Niger`s Tuareg rebellion with close ties to Kadhafi.
Both Libya`s foreign and interior ministers Tuesday also said that Daw was among the fugitives.
When Western powers backed Libya`s own rebel movement earlier this year, Alambo recruited hundreds of former rebels from Niger to fight alongside Kadhafi, whom many Tuaregs across the region see as their champion.
Last week, a Tuareg source said that people close to Kadhafi had arrived in Agadez in April with suitcases full of money to recruit "hundreds" of young people.
The source said about 1,500 Tuareg ex-rebels had fought for Kadhafi.
But since the fall of Tripoli to fighters loyal to Libya`s National Transitional Council, hundreds of Tuareg fighters have returned to Niger, while about 500 withdrew to Sirte, Kadhafi`s hometown.
Niger last month formally recognised the NTC as its neighbour`s only legal authority and urged the new leaders to safeguard the security of foreigners living in Libya.
Niger`s President Mahamadou Issoufou, elected in March, was considered an ally of Kadhafi and the two last met in Tripoli in February.
Tuaregs are also present in neighbouring Mali and Burkina Faso, whose regimes have over the years been among the main west African beneficiaries of Kadhafi`s largesse. (*)
Editor: Kunto Wibisono
Copyright © ANTARA 2011