Qadhafi accused Western nations of wanting to control Libya's oil and branded rebels seeking his ouster as "traitors." The Libyan crisis will be discussed at a two-day NATO ministers' meeting starting Thursday in Brussels as well as an emergency EU summit specially convened on the issue Friday.

Athens has traditionally maintained close relations with the Arab world and Papandreou's father Andreas cultivated ties with Qadhafi during his own tenure as Greece's prime minister some 30 years ago, when the Libyan strongman was still ostracised in the West.

Libyan state agency Jana had earlier reported that Qadhafi warned in his Tuesday conversation with Papandreou of dire consequences for North Africa and Europe if there was any Western interference in his country's affairs.

He said that Greece, a "friendly state", should warn Europeans that Libya's stability and security could have major repercussions for Europe.

Papandreou's office on Wednesday gave no indication that the Greek PM intended to convey the message to Brussels. Britain and France have called for a no-fly zone to stop Qadhafi's troops attacking opposition forces staging a rebellion now into its fourth week.

The United States has said any such move would need to have full UN backing.