UPDATE 5-Gaddafi:"Arabs, their masters" made health scare

(Updates with more Gaddafi quotes)

TRIPOLI, May 14 (Reuters) - Libyan leader Muammar Gaddafi said on Monday he would sue a news agency that reported he had suffered a brain clot, adding "the Arabs and their masters" were behind the report.

Palestinian news agency Ma'an had earlier quoted an unnamed European source as saying Gaddafi, who is in his mid-sixties, had suffered a brain clot on Sunday and was taken to hospital.

Speaking to reporters at a Tripoli hotel, Gaddafi said: "We will file a case against this news agency in order for anyone not to lie and escape."

"They have to stand before justice," he added on leaving the hotel where he gave a dinner for visiting Ghanaian President John Kufuor.

Asked who he considered was behind the report, he said without elaborating: "The Arabs and their masters."

Gaddafi, wearing his customary flowing Libyan robes and a red hat, appeared in good health and was smiling.

He added: "The one who fires at you, you should fire at him too. The one who tells you 'I am your enemy', consider yourself his enemy."

"This kind of news is made by a hired agency," Gaddafi said earlier on entering the hotel, explaining he considered the news agency had been used by a "known (intelligence) service".