The move comes in coordination with the Libyan and Algerian Governments following a pledge by Gaddafi's family that they will not use Oman as a base for political or media activity.
According to Omani newspapers, the family, consisting of Gaddafi's widow Safiyyah Farkash, daughter Aisha and sons Mohammad and Hannibal, as well as their children, has been living in Oman since October, 2012, and their expenses are being covered entirely by the Omani government.
The family members have also been given diplomatic passports by the government to ease travel, Gulf News reports.
According to the report, asked why the Omani government had refrained from announcing the granting of asylum earlier, the foreign ministry official said the government did not want to boast about the humanitarian gesture.
A Libyan official is reported to have said that the family preferred to move to an Arab country as opposed to an African country or any of the European countries that the Gaddafi regime had close relations with, the report added.