WRAPUP 8-Rebels surround president's palace in Chad capital

(Adds JANA report of ceasefire, rebel spokesman denying)

By Moumine Ngarmbassa

N'DJAMENA, Feb 2 (Reuters) - Chadian rebels surrounded the presidential palace in N'Djamena on Saturday after storming into the capital, and France began evacuating French and foreign nationals from the city.

After a day of fierce clashes in the streets of N'Djamena, there was speculation about the whereabouts of President Idriss Deby, but at least two of his ministers said he remained inside the palace complex at the head of loyal troops.

The official Libyan news agency JANA reported one of the leaders of the rebels, Mahamat Nouri, had agreed to a ceasefire and negotiations with government forces following mediation by Libyan leader Muammar Gaddafi.

But a rebel spokesman, Henchi Ordjo, told Reuters that the rebel fighters were simply holding back an assault on the palace to allow Deby the opportunity to leave.

"No ceasefire has been agreed," he said. Officials at France's Foreign Ministry and Defence Ministry said they could not confirm the JANA report of a ceasefire.

Rebels using pickup trucks mounted with cannon and machine guns had fought their way into the capital after apparently meeting only weak resistance from government forces. They last attacked N'Djamena in 2006 but failed to take it then.

A French air force plane began evacuating several hundred French and other foreign nationals to Gabon, an official at the French military base in N'Djamena said.