Britain is to expel all Libyan embassy staff from the country, a Foreign Office spokesman said on Wednesday.
"We can confirm that the Libyan charge d'affaires has been called to the Foreign and Commonwealth Office and is being informed that he and the remaining Libyan diplomats in the UK are being expelled," the spokesman told Reuters.
A government source also told Reuters that Britain is to recognise the opposition Transitional National Council as Libya's legitimate government.
Foreign secretary William Hague was due to hold a news conference at 1000 GMT.
Media reports speculated that the reason behind the expulsion was to replace the diplomats from Muammar Gaddafi's rule with representatives of the council.