Air and missile strikes have hit IS positions this week, officials said. A spokesman said troops were moving closer to the city centre.
The forces, aligned to the UN-backed unity government in Tripoli, began the battle to retake the city last month.
A spokesman, Ahmed Hadia, told the BBC IS forces had weakened, but "not totally broken down".
He said the troops were encircling part of the city.
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Clashes centred on the Ougadougou conference centre, which was once a venue for international summits but has now become an IS command centre.
Forces loyal to the government targeted the conference centre with heavy artillery fire, backed by warplanes.
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