De facto Labour leader Peter -now Lord- Mandelson met Libyan leader Muammar Gaddafi's son last week, ahead of the announcements that Megrahi was likely to be freed, would also drop his appeal, and that the police were no longer investigating Crown Agent Norman MacFadyen.

Mandelson's spokesman said the meeting and subsequent events surrounding the Megrahi case were "entirely coincidental", despite official confirmation that they had in fact discussed the Megrahi case. The conversation was described as "fleeting."

Mandelson was staying as a guest of the Rothschild family on the Greek island of Corfu.

Downing Street confirmed that they were in close contact with the US administration on a "range of issues" surrounding Lockerbie.