Relatives and campaigners are calling for a public inquiry into the Lockerbie saga after it emerged the appeal by the man convicted of the bombing will be dropped.

Relatives and campaigners are calling for a public inquiry into the Lockerbie saga after it emerged the appeal by the man convicted of the bombing is being dropped.

News that Abdelbaset Ali Mohmed al Megrahi, who is serving 27 years in HMP Greenock for the bombing which killed 270 people, is to be released next week has split opinion on both sides of the Atlantic, with the US State Department restating its belief that Megrahi should spend the rest of his time in jail.

British relatives, however, who broadly welcome the Libyan's release on compassionate grounds, have raised fears that the Scottish justice system's role will never be properly scrutinised without an inquiry now his appeal is to be dropped.

Dr Jim Swire, whose daughter Flora died in the tragedy, last night said he was extremely concerned about rumours that the Scottish Government had suggested to Megrahi that he drop the appeal if he wants to go home. Mr Swire said that if he could, he would continue the appeal himself.

"When I went to see Gaddafi to persuade him to agree to Zeist the base in Holland where the Lockerbie trial was heard, I told him the Scottish justice system was the best in the world. Since then I have been proven completely wrong.

"The speed of the appeal has been decidedly glacial and we have barely scratched the surface. A public inquiry is absolutely necessary to investigate the many concerns that have arisen. I don't believe he is guilty, but even those who do should recognise that two wrongs don't make a right."

Professor Robert Black, one of the architects of the original trial at Zeist, said: "I just don't understand why he is dropping the appeal now.

"If the appeal is to be dropped then the next step is to press for a public inquiry. The Scottish Government has not closed the door on this and in the past have implied that they are not necessarily opposed to it. Once the appeal is dropped this is really the only avenue available for people to get questions and issues into the public domain."

Officials have vehemently denied rumours about the appeal but questions have been raised about why proceedings are to be halted, as it is possible to be released early on "compassionate" grounds while legal proceedings are active.

The Scottish Government is insisting that no decision has yet been taken to free Megrahi, but The Herald understands he will go home before Ramadan starts on August 21.

Legal papers are expected to be lodged with the court of criminal appeal in the next few days to say the appeal is to be dropped.

A Libyan official in Tripoli yesterday said a deal was "in the last steps", but stressed both sides had agreed to keep quiet until Megrahi was back in Libya.

US relatives voiced anger and disgust at the reports while some British relatives backed the move, saying they believed in the innocence of Megrahi.

A US State Department spokesman said Washington had not been made aware of any final decision. "We have made our views clear to the UK Government, to other authorities, that we believe that he should spend the rest of his time in jail," he said.

Megrahi was diagnosed with terminal prostate cancer in September last year but his condition has since "deteriorated" significantly, his legal team say.

A Scottish Government spokeswoman said: "Justice Secretary Kenny MacAskill is still considering all the representations in both cases and hopes to make a decision this month."