Iran has released five diplomatic staff employed by the British Embassy in Tehran after widespread criticism over their detention from Western governments.

Eight Iranian staff members, who are thought to work in the embassy’s political section, were arrested on the weekend after being accused of playing a “significant role” in opposition protests.

The move was condemned by David Miliband, the Foreign Secretary, and EU ministers who demanded the immediate release of the employees or Tehran would provoke a “strong and collective response”.

This morning an Iranian ministry spokesman said that the Government had released some of the staff members.

"Eight people were arrested. Five were freed and three are still being interrogated," a ministry spokesman, Hassan Ghashghavi, said at a press conference.

Mr Ghashghavi also said that Iran, which has accused Western nations, particularly Britain and the US of "meddling", has no current plans to close embassies or downgrade diplomatic ties with foreign nations.

"There is no plan at the moment to close any embassy or downgrade ties with them," Mr Ghashghavi said when asked if Tehran planned to close the British embassy.

Sources told The Times yesterday that if Britain was forced to close its embassy the 26 other EU states would probably follow suit.

David Miliband, the Foreign Secretary, said: “These are hard-working diplomatic staff and the idea that the British Embassy is somehow behind the demonstrations and protests that have been taking place in Tehran in recent weeks is wholly without foundation.”

Sources close to Mr Miliband said that the Foreign Secretary’s carefully calibrated message masked a deep anger at what is considered a cynical attempt by Iran’s rulers to distract attention from their domestic problems.

About 2,000 supporters of Mir Hossein Mousavi, the challenger to President Ahmadinejad in the election, have been arrested and hundreds more are believed missing.

Iranian sources said that the eight arrested worked for the embassy’s political section, although the Foreign and Commonwealth Office would not confirm that. They do not have diplomatic immunity. One Iranian analyst feared that those detained could be forced to “confess” that they had conspired against the Government in Tehran.

The British Embassy employs about 100 Iranians in roles ranging from political advisers, consular officials and translators to security guards.

In February the British Council had to suspend its operations in Tehran after the regime intimidated its 16 Iranian staff and forced them to resign.

The arrests are the latest move in Iran’s concerted campaign to paint those challenging President Ahmadinejad’s re-election as pawns of Britain and Western powers determined to destroy the Islamic republic.

In recent days Ayatollah Ali Khamenei, the Supreme Leader, had labelled Britain the “most treacherous” of those powers.

Two unnamed British diplomats and the BBC’s Tehran correspondent have been expelled; officials have accused British intelligence and its Iranian “stooges” of fomenting the unrest; and a British-Greek journalist has been arrested.

Iran demonstrated in 2007 its willingness to provoke Britain when its forces arrested 15 British naval personnel in the Shatt al-Arab waterway. They were held for 12 days.

Last week Ahmed Khatami, a hardline cleric close to the regime, used a nationally televised sermon at Friday prayers in Tehran to attack Britain: “In this unrest, Britons have behaved very mischievously and it is fair to add the slogan of ‘Down with England’ to the slogan of ‘Down with USA’.”

Gholam Hossein Mohseini Ejehi, Iran’s Intelligence Minister, accused some British Embassy staff of mingling with protest crowds. He accused Britain and the US of wanting to carry out a “velvet revolution” in Iran but said that this was impossible.

“People are wise and they are very close to their system,” he said.

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