Abdel Hakim Belhadj was put on a CIA “rendition” flight to Tripoli, where he says he was repeatedly tortured, after British intelligence officers provided information on his movements.
Mr Belhadj, who is now a leader of the rebel forces that have ousted Gaddafi, has demanded an apology from Britain for its part in the “illegal” 2004 operation and has suggested he might sue the Government.
Jack Straw, the foreign secretary at the time, denied any knowledge of the incident, and tried to shift the blame on to MI6 saying: “No foreign secretary can know all the details of what its intelligence agencies are doing.”
But Whitehall sources responded by saying the involvement of MI6 in tipping off the Libyans had “ministerial approval”.
David Cameron said the “significant accusations” would be investigated as part of the inquiry into the alleged torture of detainees, which is being carried out by Sir Peter Gibson, a retired judge. The Prime Minister also acknowledged concerns that the British and Libyan security services had become “too close” and suggested Tony Blair was too “credulous” with regards to the Gaddafi regime.