“It will be up to Gaddafi and his insiders to determine what their next steps are, but we would certainly encourage that they would make the right decision and not only institute a real comprehensive ceasefire, but withdraw from the cities and the military actions and prepare for a transition that does not include Colonel Gaddafi,” Clinton said.

Speaking at a press event with Moroccan Foreign Minister Taieb Fassi Fihri, Clinton said, "Gaddafi has a decision to make, and the people around him each have decisions to make. The quickest way for him to end this is to actually serve the Libyan people by leaving."

Clinton echoed what Obama has previously said about American involvement in Libya, noting that the administration's main goal in enforcing a no-fly zone and allowing military involvement is protecting civilians.

“It is still early, but we have made significant progress. This week, Gaddafi’s troops were poised to enter Benghazi over the weekend, putting hundreds of thousands of civilians in that city of 700,000 at great risk. Today, those troops have been pushed back and those civilians are safer as a result. Coalition efforts have downgraded Mr. Gaddafi’s air defense capabilities and set the conditions for an effective no-fly zone,” she said.

Clinton said much of the progress in Libya may be hard to see from afar.

"[I]t is import to remember that many, many Libyans are safer today because the international community took action. Now, of course, challenges remain so long as Gaddafi continues to direct his forces to attack his own people, so the United States will continue to support this mission as we transfer command and control to NATO."

In a press gaggle aboard Air Force One Wednesday afternoon Deputy National Security Advisor for Strategic Communications Ben Rhodes said, "[H]is forces are facing a challenge that they didn’t before, and it’s affecting their ability to harm the Libyan people...[W]hat is clear is that he is no longer advancing in a way that poses the same threat to the Libyan people as it did a week ago."

Clinton was invited Wednesday to testify before the House Foreign Affairs Committee on hostilities in Libya. There has not yet been a confirmation of if she will attend.

Clinton told ABC News' Diane Sawyer on Tuesday that Gaddafi's allies were reaching out to the U.S. and other nations to explore options for the leader's possible exit from the country.

CNN reports, "Abdullah Sanussi, Gadhafi's close confidant and brother-in-law, has called the State Department almost daily, and Foreign Minister Musa Kusa has also reached out several times, senior U.S. officials told CNN. Additionally, Arab allies have told U.S. officials they have been contacted by members of Gadhafi's inner circle. However, the officials said that none of Gadhafi's inner circle has indicated Gadhafi was ready to leave, nor have any of them suggested they are ready to abandon Gadhafi."

Clinton said, "I'm not aware that he personally has reached out, but I do know that people allegedly on his behalf have been reaching out…[S]ome of it, we think, is exploring. You know, what are my options, where could I go, what could I do. And we would encourage that."