Zuma, who met the Libyan leader at an undisclosed location during a visit to Libya on Monday, also listed conditions set out by the embattled leader that have scuppered previous ceasefire attempts.
He said Gaddafi was willing to accept an African Union (AU) initiative for a ceasefire that would stop all hostilities, including NATO air strikes in support of rebel forces.
But Zuma said Gaddafi insisted that "all Libyans be given a chance to talk among themselves" to determine the country's future. The rebels, however, quickly rejected the offer.
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Zuma did not say whether Gaddafi was ready to step down, a key demand of the rebels.
In April, Zuma led a delegation of the African Union to Libya with an AU proposal for a truce. Gaddafi said he would accept the truce, but quickly ignored it and resumed his attacks.
In the rebels' de facto capital of Benghazi, Fathi Baja, the rebel foreign minister, rejected the African Union plan.
"We refuse completely; we don't consider it a political initiative, it is only some stuff that Gaddafi wants to announce to stay in power," he told the Associated Press.
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