Seif al-Islam Gaddafi said any compensation arising from alleged Libyan arms supplies to the terror group would be a matter for "the courts", adding: "They (the victims' families) have their lawyers, we have our lawyers."

He also said Gordon Brown had not been involved in talks over the release of the Lockerbie bomber.

And he condemned British politicians as "disgusting and immoral" for using the case of Abdelbaset Ali Mohmed Al Megrahi to make political capital.

Mr Gaddafi's comments came hours after Mr Brown announced that he was setting up a dedicated Foreign Office team to assist the IRA victims.

Of the looming British attempts to extricate compensation, the Libyan leader's son said: "Anyone can knock on our door. You go to the court. They have their lawyers. We have our lawyers."

And when asked if his answer to the compensation demand would be "no" in the first instance, he replied: "Of course."

Asked whether the Prime Minister involved himself in the release of Megrahi, Mr Gaddafi said: “He didn’t.”

The discussions had been “very, very technical”, he said.

He added: “It couldn’t be discussed at a high level. It is not something that should be discussed at a leadership level.”

Mr Brown has faced accusations that the British government was involved in the deliberations, with valuable oil and trade deals playing a factor.

But last week he insisted the final decision to free Megrahi had been taken by the Scottish Government alone, saying: “There was no conspiracy, no cover-up, no double dealing, no deal on oil.”

Mr Gaddafi criticised British politicians making counter claims as “disgusting”.

“They are trying to use this human tragedy for their own political agenda,” he said.

“It’s completely immoral to use this case to advance your own political agenda.”

Mr Gaddafi also commented on the jubilant scenes in Tripoli which greeted the arrival of Megrahi after he was flown back home from the UK last month.

Crowds of people waving Libyan and Scottish flags were waiting to greet the Lockerbie bomber, sparking widespread anger both in Britain and the US.

Mr Gaddafi said he “didn’t expect” the crowd which had been waiting several hours for the arrival.

“Sooner or later we had to leave the aircraft,” he said. “We couldn’t leave the aircraft with a hood on our heads.”

He added that he thought Megrahi was “no criminal”, saying: “He is innocent. I believe 100% he is innocent.”