The United Nations leadership received backing from the UN Security Council last month to to send a 235-strong guard force because of the mounting threat of attack on the UN mission in Tripoli.
The government at first agreed the plan and then objected to it as outside interference, officials said yesterday. Libya has been unsettled since the fall of longtime dictator Moamer Kadhafi in late 2011.
"It doesn't look possible that the proposal can now go ahead," Britain's UN ambassador Mark Lyall Grant told reporters, adding that the UN secretariat was having a rethink.
Britain has taken a leading role in Libyan affairs on the 15-member Security Council which agreed a statement yesterday expressing "grave concern" over the worsening security and political divisions in the country.
The statement said recent turmoil threatens to "undermine the transition to democracy" in Libya where there has been serious unrest in the key western city of Benghazi while protesters have blocked oil terminals in the east of the country.
The council also condemned torture in "illegal" militia detention centres where thousands of people are said to have been held since Kadhafi's downfall.
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