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Libya has agreed in principle to hand over to the U.N. secretary-general two men accused of blowing up a Pan Am jumbo jet over Scotland, diplomats said Friday.

"Arab states are intensively working on such a solution and Libya has agreed in principle to surrender them to the U.N. Secretary-General (Boutros Boutros-Ghali)," a North African diplomat told Reuters."A flurry of consultations is under way to reach an agreement and Libya would have to announce it," he added.

The diplomat, who declined to be named, said the announcement to hand over the two suspects - Abdel Baset Ali Mohammed al-Megrahi and al-Amin Khalifa Fhima - was expected before a U.N. Security Council meeting in the next few days to consider a call for sanctions against Libya.

Libyan leader Moammar Gadhafi appealed to world leaders Friday to oppose the resolution, saying it violates the U.N. Charter.

"It will be up to the U.N. secretary-general to decide, after the surrender, what to do with the two suspects," he added.

The United States and Britain want the two to stand trial.