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A BBC correspondent said Saif al-Islam seemed confident and full of adrenalin.
Our correspondent says fighting in Tripoli has restarted, with the sounds of gunfire and grenades. Both sides say they control most of the capital.
On Monday the rebels met strong resistance from pro-Gaddafi forces as they continued their push.
Rebel leader Mustafa Abdul Jalil claimed fighters were in control of 95% of the city. But the BBC's Matthew Price, in Tripoli, says it is still unclear who is winning the battle for the capital.
Saif al-Islam Gaddafi turned up in the early hours of Tuesday at the Rixos Hotel, where many international journalists are based.
I asked Saif al-Islam Gaddafi where he saw the balance of power in Tripoli: "We gave them a hard time, so we are winning," he told me. He seemed pumped full of adrenalin and brimming with confidence.
Precisely who is winning the battle for Tripoli, though, is still unclear. In parts of the capital, rebel forces are in control. After their astonishing advance over the weekend, they believe victory is within sight.
But Gaddafi forces have been reinforced and some rebel supply lines into the city seem to have come under attack. It is clear loyalists are fighting back in some areas and many casualties are being reported.
The sudden appearance of Saif al-Islam, said only on Sunday to have been captured by the rebels, will merely embolden them further.
But Gaddafi forces have been reinforced and some rebel supply lines into the city seem to have come under attack. It is clear loyalists are fighting back in some areas and many casualties are being reported.
The sudden appearance of Saif al-Islam, said only on Sunday to have been captured by the rebels, will merely embolden them further.
He told the BBC: "We have broken the backbone of the rebels." He added that by moving into Tripoli, the rebels had fallen into "a trap".
"We gave them a hard time, so we're winning," he said.Saif al-Islam Gaddafi, 39, had been widely regarded as a likely successor to his father. On Sunday the rebels claimed they had captured him, along with other members of his family.
His apparent arrest was confirmed by the International Criminal Court (ICC), which has indicted him, his father and the head of the intelligence service, Abdullah al-Senussi, on war crimes charges.
UK International Development Secretary Andrew Mitchell blamed the "fog of warfare" for the confusion over Saif al-Islam's reported arrest.
"There are quite long lines of communication involved," he told the BBC. "It's inevitable in this situation, with the warfare going on as it is, that there will be some confusion."
Saif al-Islam said he did not care about the ICC arrest warrant.
Asked if Col Gaddafi was safe and in Tripoli, he replied: "Of course."
He also went to his father's Bab al-Azizia compound and told three journalists accompanying him: "Tripoli is under our control. Everyone should rest assured."
The Libyan leader's whereabouts are still unclear. A diplomatic source told the AFP news agency that Col Gaddafi could still be at the compound. He has not been seen in public for months, although he has broadcast audio messages from undisclosed locations.
In a broadcast late on Sunday, he urged residents to "save Tripoli" from the rebels.
Members of the rebels' National Transitional Council (NTC) in Benghazi say they plan to fly to the capital on Wednesday to start work on forming a new government.
A BBC correspondent in Benghazi says there is optimism in their ranks that by the middle of the week Tripoli airport will be secure enough to allow them to move.
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In other developments:
- Pro-Gaddafi forces fire a suspected Scud missile from near their stronghold city of Sirte, US defence officials tell Reuters news agency
- Col Gaddafi's eldest son Muhammad reportedly escaped from rebel custody hours after being detained
- China and Russia issue statements urging Gaddafi forces to stop fighting
- UN Secretary General Ban Ki-moon says leaders of regional blocs will meet in New York later this week
- Egypt formally recognises the rebel National Transitional Council as the legitimate representative of the Libyan people
Rebel fighters have set up checkpoints in parts of the city, and say reinforcements are arriving by boat. But they have met stiff resistance in a number of areas.
There was sustained gunfire near the Bab al-Azizia compound throughout Monday.
Gaddafi loyalists also remain in control of the area further south around the Rixos Hotel, where many Western journalists are based.A rebel convoy coming in from the west was ambushed by Gaddafi loyalists using anti-aircraft fire on Monday. The convoy was forced to pull out of the city.
As night fell the fighting appeared to die down in many areas. Both sides insist they have the upper hand.
Government spokesman Moussa Ibrahim claimed late pro-Gaddafi had control of at least 75% of the city, while the rebels said on Monday night they controlled almost all of it.
"We are now, I could say, in control of more than 95% of Tripoli," NTC chairman Mustafa Abdul Jalil told the BBC. "The whole forces of Gaddafi disappeared, suddenly disappeared. Only, I think, the brigade of Khamis [Gaddafi, one of the colonel's sons] is still resisting."
However, our correspondents in Tripoli say the situation is extremely fluid, and it is impossible to determine who is telling the truth.
World leaders have urged Col Gaddafi to step down. US President Barack Obama said elements of the Gaddafi regime continued to pose a threat.
"But this much is clear: the Gaddafi regime is coming to an end and the future of Libya is in the hands of its people," he said.
He appealed to Col Gaddafi to reduce further bloodshed by "explicitly relinquishing power to the people of Libya and calling on those forces that continue to fight to lay down their arms".
The uprising against Col Gaddafi's 42-year rule began in February. The rebels held the east of the country and pockets of the west, before making their push towards the capital at the weekend.
Nato air strikes have been targeting Col Gaddafi's troops, acting on a UN mandate to protect civilians.
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