A Special Air Service (SAS) unit and a junior diplomat were being held by rebels in eastern Libya following a bungled mission to put the envoy in touch with them, The Sunday Times said.
The broadsheet, citing sources, said the SAS unit, thought to be up to eight men, were captured along with the diplomat they were escorting through the rebel-held east.
"We can neither confirm nor deny the report," a Foreign Office spokeswoman told AFP.
The Ministry of Defence (MoD) said: "We neither confirm nor deny the story and we do not comment on the special forces."
The uninvited appearance of the SAS alongside the diplomat "angered Libyan opposition figures who ordered the soldiers to be locked up in a military base," the weekly said.
Cameron and Clegg, its all about oil and the arms trade.
News just in that British spies and SAS have been arrested in East Libya by the rebels.
Perhaps the plan is to help Gadaffi, so a big war can kick off and BAE can sell lots of kit to one side or the other.
oh I seem to have the photo of the wrong prime minister, plus la change!