Labour and the SNP have accused each other of having tried to water down the historic agreement on new powers for Scotland.

Labour sources said the SNP backed an eleventh-hour attempt to remove a right to create new benefits from this week's Smith Commission report.

That claim was denied by the SNP, which accused Labour of being "at it".

The row followed reports plans to give Holyrood greater control over welfare were dropped in the final days of cross-party talks.

On Thursday First Minister Nicola Sturgeon branded the Commission's package of measures "disappointing".

Labour sources said her party had backed a suggestion, at 6.30pm on Wednesday, to remove one of the most far-reaching sections of the document - the clause giving the Scottish Parliament "powers to create new benefits in areas of devolved responsibility".

After sustained argument between the parties, however, that wording remained in the report.

A spokesman for the SNP has denied it supported moves that would have prevented Scottish ministers gaining the power to create new benefits.

"The truth is exactly the opposite," he said. "The SNP called for devolution of the entire welfare system.

"Watered down proposals came from the Westminster parties, which they then watered down even further."

A Labour source called that claim "disingenuous".

He said the basis of the Commission's discussions had been that "nothing is agreed until everything is agreed".

Earlier the BBC reported it had seen a draft of the recommendations which suggested plans to give Holyrood wider welfare powers were struck out of the report in the last days of talks.

The draft, from 11am on Tuesday morning, reportedly included giving MSPs the power to vary the Tory-LibDem Government's planned new benefits system Universal Credit. In the end that proposal did not make it into the final version of the report.