"While cautioning that an agreement remains a long way from being concluded, the secretary general said the beginnings of a negotiation process are now under way under the auspices of his special envoy to Libya" Abdul-Ilah Al-Khatib, said UN spokesman Martin Nesirky.
Ban took part in a video conference with top officials from the EU, AU, Arab League and Organization of the Islamic Conference who were meeting in Cairo. He also held telephone talks on Friday with Libyan prime minister Baghdadi al-Mahmudi who has said contacts have started with the rebel opposition.
Protests against against Kadhafi that erupted in February have turned into a near civil war in Libya with the rebel leaders insisting that they would not agree a ceasefire and talks while Kadhafi remained in power.
"The secretary general said that finding a political solution to the crisis in Libya remains the United Nation’s top priority," said Nesirky.
"Each passing day brings more turmoil to the people of Libya, the situation is still very fluid and the front lines keep shifting. It is important that we continue to work together," the UN secretary general was quoted as telling the meeting.
Ban expressed "strong concerns" about the violence and humanitarian crisis in Libya.
He said there were food shortages and fuel and growing concerns over access to water and medical care. A major outbreak of measles has been reported in the southwestern city of Sabha and there is a general lack of medicines in the country.
Ban also stressed the need for "post-conflict planning on Libya" to the Cairo meeting.
The UN chief highlighted his concerns about the humanitarian crisis to the Libyan prime minister on Friday, the spokesman said. No other details of their conversation were given.
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