Jack Straw has insisted that Scottish ministers will have the final say on whether to transfer the Lockerbie bomber, following claims that he was a pawn in a recent £450m oil deal with Libya.
The Lord Chancellor's comments come just a week before the next court hearing on documents relating to the appeal by Abdelbaset Ali Mohmed al Megrahi.
Last night Mr Straw sparked renewed criticism from the Scottish Government for failing to explain why Westminster had not obtained an order specifically excluding Megrahi from the infamous "deal in the desert" made by Tony Blair last year.
Whitehall has repeatedly denied that Megrahi, the man serving 27 years in Greenock Prison for the attack, was part of the arrangement signed by the former prime minister.
However, Libyan officials and lawyers have maintained that Megrahi was a key part of the discussions, which have been ongoing since 2005. In a letter published in The Herald today, Mr Straw says: "No deal has been done with Libya for the transfer of Megrahi.
"The decision on whether or not a prisoner detained in a Scottish prison is transferred to another country is a matter for Scottish ministers, not the UK Government.
"From the outset we have been clear with the Scottish Executive about this fact and have not at any time sought to undermine due process in Scotland."
The agreement signed by Westminster means that any Libyan serving their sentence in the UK, who has no pending appeal, could be returned home. However, under the law, those serving sentences in Scottish prisons could be moved only with the permission of Scottish ministers.
Westminster officials said Britain had prisoner transfer agreements with more than 100 countries and that Scottish ministers would have the final say in the Lockerbie case.
They argue that none of the other agreements contain exclusion clauses.
However, the news last month that Libya had ratified a £450m exploration contract with BP following last year's talks with Tony Blair has reignited suspicions.
Libyan negotiators claimed that ratification of BP's deal had been left hanging for months because they were angered that Mr Blair had left open the possibility of excluding Megrahi from a deal to repatriate Libyan prisoners held in British jails.
BP has denied there were political reasons for the ratification of the deal being delayed.
Last night a spokesman for Alex Salmond, the First Minister, said: "We are strongly opposed to a prisoner transfer agreement which is open-ended, and which fails to secure the exclusion that the UK government pledged to seek."
A source close to the First Minister described the Scotland Office as an "irritant" for interfering in an ongoing process between Scottish ministers and Westminster.
A Scotland Office source said: "This is a matter for Scottish ministers.
"For any politician to say otherwise raises the danger that the relatives of the victims will become unnecessarily concerned, upset and outraged about something that will not happen."
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