Saif al-Islam threatened to release information on contributions from the Gadhafi family to Sarkozy's 2007 campaign unless blocked Gadhafi family assets in France are released, Radio France Internationale reported. France has also recognized the Libyan rebels as the legitimate representatives of the population.
"We funded it and we have all the details and are ready to reveal everything," Saif told the European TV channel Euronews. "The first thing we want this clown to do is to give the money back to the Libyan people."
Sarkozy has denied getting campaign contributions from the Gadhafi family.
The U.N. Security Council has approved sanctions against the Gadhafi regime. Violence in Libya has ratcheted up this week as forces loyal to the government push rebel forces back.