Gadhafi's son Saif al-Islam Gadhafi is wanted by the ICC on charges of crimes against humanity during last year's civil war. The government in Tripoli maintains the right to try former regime officials in its national courts if it can prove it's up to the task.
Libyan lawyer Ahmed al-Jehani was quoted by the BBC as saying Tripoli "needed time" to organize a fair trial, asking the ICC to "be patient."
This is the first time Libyan authorities appeared before ICC judges at The Hague. Melinda Taylor, an ICC lawyer working on behalf of Saif al-Islam, is expected to tell the courts her client can't receive a fair trial in Libya, the BBC adds.
Taylor was arrested by Libyan authorities in June and held for several weeks. She was suspected of passing sensitive documents over to Saif al-Islam from one of his supporters.
Philippe Sands, a lawyer representing Libya, said Saif al-Islam is in rebel custody in western Libya. Saif al-Islam would be transferred to Tripoli to face trial there, he said.