Ahead of the meeting, President Barack Obama vigorously defended American military intervention in Libya, saying failure to act would have carried a far "greater price" for the US and also led to a "slaughter" of civilians in the north African nation.
Noting that the US has an important "strategic interest" in preventing Gaddafi from overrunning those who oppose him, Obama also declared, "we have stopped Gaddafi''s deadly advance."
At the same time, Obama in his first address to the nation since launching cruise missiles and airstrikes 10 days ago ruled out targeting Gaddafi citing the Iraqi experience, warning that trying to oust him militarily would be a costly mistake.
Britain formally recognised Libya''s rebel leadership as the country''s legitimate government, becoming the third country after France and Qatar to take this step.
Cameron and French President Nicolas Sarkozy issued a joint statement supporting the interim National Transitional Council.
The statement came as a Downing Street spokesman confirmed diplomats had made contact with the council.
British foreign Secretary William Hague said he wanted Gaddafi to leave power and face trial at the International Criminal Court.
Italian Foreign Minister Franco Frattini said several countries planned to put forward a deal which would propose a ceasefire, exile for Gaddafi and a framework for talks between Libya''s tribal leaders and opposition figures on the country''s future.
The London meet will also decide on the scope of NATO-led coalition airstrikes and to more clearly define the extent of cooperation between Libya''s opposition groups and International Military Commanders.
As the international leaders started assembling in London, Gaddafi in a letter addressed to them called for an end to what he called as "barbaric offensive" against Libya, likening it to Hitler''s invasion of Europe and bombing of Britain in the World War-II.
"Stop your barbaric, unjust offensive on Libya. Leave Libya to Libyans", Gaddafi said in a letter to the leaders meeting in London, a copy of which was released by official Jana news agency.
Gaddafi in his letter said he will "accept any decision taken by the African Union".
"How could you attack those who are fighting al Qaeda", he asked.
The London conference, hosted by the British Foreign Secretary, included representatives of about 40 countries and international organisations, including UN Secretary General, African Union chairman Jean Ping, Qatari Prime Minister, foreign ministers from Iraq, Jordan, UAE and Morocco besides Clinton and foreign ministers from across Europe.
The Arab League, Lebanon and Tunisia will also be represented. Russia will not be represented, as its leaders have protested at what they see as an abandonment of the UN resolution in favour of a move towards formal regime change.
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