UPDATE 2-Libya's Muammar Gaddafi vows to fight on - TV
* Whereabouts of Gaddafi unknown
* NTC seek surrender of Gaddafi-held territory (Adds quotes from voice message)
CAIRO, Sept 1 (Reuters) - Muammar Gaddafi called on his supporters to set Libya ablaze, vowed his backers would not give up and said those against him were divided, according to an audio message broadcast on Arabic news channels on Thursday.
"They want to enter a long battle with us. Let it be a long battle. We will fight from place to place, from town to town, from valley to valley, from mountain to mountain," Gaddafi said in his message.
"If Libya goes up in flames, who will be able to govern it? Let it burn. They don't want to rule Libya. They cannot rule it as long as we are armed. We are still armed. We will fight in every valley, in every street, in every oasis, and every town."
Gaddafi's whereabouts were a mystery. He gave no indication of where he was in his audio remarks.
A Libyan military chief said Gaddafi was believed to be in Bani Walid outside Tripoli planning a fight-back. An Algerian newspaper has reported him to be in the border town of Ghadamis.
The ruling National Transitional Council (NTC), which ousted him, is seeking the surrender of Gaddafi's coastal home town of Sirte and other areas loyal to him.
Gaddafi said tribes in Bani Walid, Sirte and other areas of the country were armed and could not be subdued. He said those fighting against him were divided and called on tribes in Tripoli to ambush his opponents. Continued...