The only surviving terrorist from the Iranian embassy siege is to be freed within days amid Foreign Office fears that his release will trigger a diplomatic row with Iran.

Fowzi Badavi Nejad will be freed from an open prison and allowed to stay in the UK despite Iran wanting his return to Tehran to face trial for the murder of two hostages killed during the siege.

The Foreign Office has failed in an attempt to win assurances from Iran that Nejad would not suffer torture or death if he was returned on his release after serving 27 years in English jails.

As a result Nejad has been assured that he will not be deported as it would be a breach of Article 3 of the Human Rights Act, which bans putting anyone at risk of torture and inhumane treatment.

Although Iran has made no formal request for Nejad to be sent back, the Foreign Office is concerned that Britain’s refusal to deport him will provoke a diplomatic row, The Times has learnt.

Foreign Office officials are concerned that Iran will interpret the decision as a sign that Britain condones terrorism or is not taking it seriously.

Nejad will be released on licence after a decision by a three-strong panel of the Parole Board earlier this week that he no longer posed a risk of committing an offence that would cause injury to life or limb.

John Dickenson, from law firm Irwin Mitchell’s Public Law team, said: “I can confirm that after 27 years of imprisonment the Parole Board has concluded that Mr Nejad is no longer considered to be a threat to society and is eligible for release.

“This decision has been supported by reports written over many years by prison staff and other professionals who have worked with, and monitored, Mr Nejad.”

Mr Dickenson added: “He has expressed remorse throughout his imprisonment as well as expressing a desire to contribute positively to the community. It is envisaged that Mr Nejad will work following his release, and will not become a burden to the tax payer.”

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.

“He shouldn’t be allowed to stay in this country”, he said.

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