On Tuesday, Daesh militants launched an attack on Sabrata, seizing the police headquarters and central areas of the city, DPA reported.
Six policemen and five extremists were killed during clashes that erupted following the attack according to reports earlier this week.
Most of the extremists who carried out the attack are believed to be Tunisians, while some are Libyans, local military council chief Taher al-Gharabi said earlier this week.
There are mounting concerns that Daesh is boosting its presence in Libya, which was thrown into chaos after the NATO-backed ouster of longtime dictator Moamer Gaddafi in 2011.
Daesh already controls a long stretch of coastline around the city of Sirte, about 500 kilometres east of Tripoli.
Sabrata, located 80 kilometres from the Tunisian border, is seen as a hotbed for foreign nationals who have joined the Daesh group.