A British man questioned by detectives investigating the disappearance of Madeleine McCann is being formally treated as a suspect, Portuguese police said today.

Robert Murat, who had been acting as a translator for police in the search for the missing 4-year-old, had been released with restrictions imposed on his movements.

He is the first person named as a formal suspect in the 12-day inquiry but at a press conference this evening Portuguese police said they did not have enough evidence to arrest him.

Chief Inspector Olegario Sousa, who is leading the investigation, confirmed the scope of the inquiry had narrowed.

“Further to investigations on Madeleine McCann’s disappearance we are to inform that efforts have been focused on some lines of investigation which show a higher consistency,” Mr Sousa said.

“During the information collection last weekend one of those lines under investigation achieved strength and consistency.”

Mr Murat, 33, was taken for questioning at Portimao police station yesterday along with a German woman, Michaela Walczuch, believed to be his girlfriend, and a Portuguese man, Luis Antonio, thought to be her husband. Police have said that Ms Walczuch and Mr Antonio are only considered to be “witnesses”.

Police yesterday searched Mr Murat’s villa and Mr Sousa confirmed that a British man has now been classed as an “arguido” or formal suspect. Under Portuguese law he must report to police every five days and cannot leave the country. Police must obtain a court order if they decide to arrest him.

"There was not sufficient material to charge this suspect. When we work we work to get results, but this does not always happen at once," Mr Sousa said.

Sally Eveleigh, Mr Murat's cousin, who lives near Praia da Luz, says she has spoken to him since he was questioned. He told her he was devastated by the police investigation into him.

“Robert is shattered by this. He feels his life has been ruined forever. He feels he entered in the search for Madeleine to try to help and now police have turned against him,” she said.

"He offered his help as a translator to police and Madeleine's parents through pure goodwill. Now this has all been turned against him and he is devastated. He cannot believe the situation he is now in."

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