Libyan ambassador to Somalia and the cultural attache were kidnapped Saturday in the Somali capital Mogadishu, sources in Libyan Embassy in Mogadishu told local radio.
The two diplomats were shopping at Mogadishu's Bakara market, when surrounded by men armed with pistols and later put in a car and driven away.
Bakara is the city's main market and an insurgent stronghold and is disrupted daily by clashes between the insurgents and Ethiopian soldiers supporting government troops.
At least three other foreigners have been abducted in Somalia in recent weeks, all of them freed after short periods.
The incident comes two days after two aid workers from the Medecins Sans Frontieres (MSF) were released in the semi- autonomous region of Puntland.
Kidnappings are common in Horn of Africa nation where captives are generally treated well because they demand ransom in exchange for their freedom.
The authorities in Somalia have reportedly confirmed that the Libyans were kidnapped but were unable to give further details.
Earlier Saturday, the new cabinet of Somali Prime Minister Nur Hussein Hassan was sworn in, a day after 15 of the expected 18 ministers were appointed.