A deal to return British terrorist suspects held at Guantanamo Bay is to be sealed before Christmas, according to officials from both the US and the UK.
The "returns policy" is now believed to be the leading option being considered in Washington, which has made it clear it wants to end the tension between the US and Britain over the issue.
Under the terms of the agreement, the nine British detainees will be returned to Britain, either after pleading guilty to charges in America and being sent to serve in British prisons, or being sent back without being charged.
It is then likely that some of them will be sent to Belmarsh high security prison and held under prevention of terrorism legislation.
At least two, Shafiq Rasul and Asif Iqbal, the so-called "Tipton Two" could be freed.
The agreement will bring to an end one of the most damaging conflicts between the White House and Downing Street, which has been pressing for a fair trials system for the British citizens who have been held under military command for two years.
Many thought that a deal would be signed to mark US President George W. Bush's visit to London two weeks ago. But complex legal arguments, which are still on-going, meant a delay.
The US has been moving rapidly in recent weeks to solve the Guantanamo problem which has seen strained relations with a number of countries whose citizens are held at the same base.
Last week Colin Powell, the US Secretary of State, indicated that although a deal was not yet done with Britain, they had finished questioning two of the nine detainees, thought to be Rasul and Iqbal.
An American diplomat also recently announced the release of 20 other non-British inmates from Guantanamo and Australia has also agreed a deal on its nationals being held there.
Jack Straw, the foreign secretary, and David Blunkett, the home secretary, have consistently made it clear that they wanted to see the suspects sent back to Britain to face British justice.
Attorney General Lord Goldsmith has also made trips to Washington to try to secure a deal.
British human rights lawyer Clive Stafford Smith, who is working with the suspects, said he was confident that a deal had been struck.
"The British Government has finally realized it has to help the Americans out of the corner they have painted themselves into," he said. "This deal will most likely consist of the British having to plead guilty on some nonsense charge and come back here to serve their sentence.
"However it seems highly improbable that Iqbal and Rasul will be charged with anything. There simply is nothing there."
It appears that Downing Street would be comfortable with some charges being brought but it is clear that the British Government could not guarantee a trial of anyone sent back to the UK, one of the original demands made by the US.
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