According to a source from the League of the Righteous, who did not want to be identified, Qais al-Khazaali was released from custody earlier on Tuesday.

An interior ministry official, who spoke on condition of anonymity, confirmed Khazaali had been freed, but did not provide any details.

The League of the Righteous kidnapped a British IT consultant and his four bodyguards, all Britons, in Baghdad two and a half years ago.

While Peter Moore, the IT consultant, arrived in Britain over the weekend after 31 months in captivity, three of his bodyguards were killed and their bodies have been handed over to Britain.

The fourth is believed to be dead and Iraqi government spokesman Ali al-Dabbagh said on Sunday that his body will be handed over in the coming days.

The League of the Righteous is also suspected of being behind an attack in January 2007 that killed one US soldier and led to the abduction of four others, who were later found dead.

Some commentators have said a deal might have been done to free Moore, after Khazaali was initially transferred from US to Iraqi custody last month.

Britain's Foreign Office has denied any deal was done, saying the United States transferred Khazaali into Iraqi custody under the terms of a bilateral agreement between Baghdad and Washington.

Khazaali's brother Laith was released in June, around the same time two of the bodyguards' bodies were handed over to Britain. In September, around 200 detainees were freed when a third body was transferred.

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