The only surviving terrorist from the 1980 siege of the Iranian Embassy in London is to be freed within days amid fears that his release will trigger a diplomatic row with Iran.

Fowzi Badavi Nejad will be released and allowed to stay in Britain, but Iran wants him returned to Tehran to face trial for the murder of two hostages killed during the siege. The Foreign Office has failed to win assurances that Nejad would not suffer torture or death if he were returned on his release after serving 27 years in English jails and has blocked his deportation under the Human Rights Act. But it is concerned that Iran will interpret the decision as a sign that Britain condones terrorism.

Trevor Lock, the police officer held hostage during the siege, said that he had written to the Government objecting to Nejad’s release but his wishes had been ignored.

Nejad was jailed for life in 1981 after he and five other terrorists forced their way into the Iranian Embassy in Kensington, taking 26 hostages. They were demanding independence for part of Iran.

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