A number of Libyan generals loyal to Moamer Kadhafi are now in Burkina Faso having passed through Niger, a source from Niger's ethnic Tuareg community said Friday.
"Three or four weeks ago a group of generals and senior officials close to Kadhafi entered Niger via Agadez," the source said, giving no numbers.
They continued on to Niamey, where they made large transactions at the Libyan Bisic bank before going on to Burkina Faso, the source added.
Niger's Prime Minister Brigi Rafini was in Burkina Faso on Thursday, for talks with President Blaise Compaore.
He denied persistent rumours that fugitive former Libyan leader Kadhafi was already in Niger but did not rule out giving him asylum, even though he is wanted by the International Criminal Court.
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At least two convoys of Libyan vehicles crossed into Niger in recent days, sparking intense speculation that Kadhafi might have slipped out of Libya and was on his way to either Niamey or Ouagadougou.
The ousted strongman on Thursday dismissed as lies reports he had fled to Niger.
A number of Kadhafi aides, including the head of his personal security details, Mansour Daw, are currently under house arrest in Niamey, in a state-owned villa on the banks of the Niger river.
The villa is tightly guarded by half-a-dozen armed police backed up by others in civilian clothes.
"They are in there and under close surveillance," Justice Minister and government spokesman Marou Amadou told AFP.
"For the moment they are not doing anything contrary to their refugee status."
Daw entered Niger on Sunday along with former Toureg rebel leader Agali Alambo, who lived in Tripoli after laying down his arms in 2009.