The former Libyan agent convicted of the Lockerbie bombing wants to stay in Scotland for medical treatment rather than returning to his home country if he is freed from prison.

Reports last week suggested that Kenny MacAskill, the Scottish Justice Secretary, was considering granting Abdul Baset Ali al-Megrahi, 56, an early release on humanitarian grounds because he is suffering from prostate cancer and the disease has spread to other parts of his body.

This would open the door for a possible return to Libya. A Prisoner Transfer Agreement being negotiated by the Home Office with Libya, which would allow such a move, is almost finalised.

However, al-Megrahi has now indicated that he would prefer to stay in Scotland because it provides better palliative care.

It comes just a day after it was revealed that al-Megrahi could be out of jail in less than a week. As reported by The Times yesterday, the Libyan has applied for bail pending the outcome of an appeal due to take place next year. Arguments over the application will be heard at the High Court in Edinburgh on Thursday.

Al-Megrahi, who has consistently protested his innocence, is serving a life sentence with a minimum term of 27 years after being convicted in 2001 of bombing Pan Am Flight 103 in 1988. All 259 men, women and children on board died, along with 11 residents in the Scottish Borders town who were killed by falling wreckage.

Initial inquiries suggested the involvement of a Syrian-based terrorist group, but later suspicion switched to Libya. Al-Megrahi was found guilty of the atrocity following a unique trial, held in the Netherlands but under Scottish law.

Professor Robert Black, an architect of the trial at Camp Zeist, said yesterday that if al-Megrahi secures an early release he hopes to remain in Scotland for medical treatment.

“As I understand it, he wants to stay in Scotland because the palliative care here is better,” he said. “Libya provides palliative care to a certain point and after that sends patients abroad for treatment.” He added that al-Megrahi may still choose to return home to die “as his life expectancy shrinks”.

Al-Megrahi's desire to stay in Scotland raises the prospect that taxpayers will be forced to foot the bill for his treatment, which is likely to include radiotherapy and chemotherapy.

Tony Kelly, al-Megrahi's lawyer, denied that he could become a drain on public finances. “I don't think there would be any bar to him accessing the health service, but he would probably take care of it himself,” he said. “There wouldn't be an incursion on the public purse.”

Al-Megrahi could be released immediately if he is granted bail at a hearing in the High Court. His defence team are seeking interim liberation after the Scottish Criminal Cases Review Commission referred his case back to court in June last year.

Other factors they may ask judges to take into consideration are his deteriorating health and the delay in the appeal process since the commission ruled 17 months ago his conviction could have constituted a miscarriage of justice. Al-Megrahi lost a previous appeal in 2002.

The Crown Office would not comment on the hearing ahead of next Thursday, but it is thought that it will vigorously contest the attempt.

Jim Swire, whose daughter Flora died in the bombing, said that he was in favour of al-Megrahi being granted bail after reports that his cancer is terminal. Dr Swire also criticised the slow appeals process which has led to al-Megrahi attempting to clear his name as a dying man.

“The man has reportedly got months to live,” he said. “My personal feelings are that to force him to remain segregated from his family and five children for the short remaining time that he may have before him would amount to exquisite torture.”

Professor Black said yesterday that he could see no legal argument for refusing bail to al-Megrahi.

“If the court follows standard procedure they simply look to see if this person has put forward grounds of appeal that could lead to the quashing of a conviction. His grounds are not nonsense, they were decided by the commission. According to the standard norms that apply to convicted prisoners pending appeal he satisfies the criteria, in my view.”

Dan Cohen, who lost his daughter Theodora in the tragedy, said: “I want to see al-Megrahi die in jail.”

Letters, page 21