SECRET talks are under way aimed at transferring the Lockerbie bomber from Scotland to a prison in Libya or a neighbouring north African country.

A deal to return Abdelbaset Ali Mohmed al Megrahi would probably mean the end of his appeal against the minimum 27-year jail sentence he is serving in Greenock prison.

UK, American, and Libyan security agencies would all prefer the case not to be reopened publicly, especially with improving relations between the three countries as Washington and London rebuild links with Colonel Gaddafi as part of their war on terror in other countries.

In addition, a successful appeal by Megrahi would prove highly embarrassing for the Scottish judicial system, while moving him nearer home to a Muslim jail would satisfy Tripoli's demands after it offered compensation to families of the 270 Lockerbie victims.

However, a transfer would infuriate some of the families, and critics of the original conviction, who believe Megrahi is innocent and want a public inquiry. In 2003, he was jailed for life for the 1988 explosion and told he must serve at least 27 years, originally in a GBP250,000 solitary unit at Barlinnie, Glasgow.

The Scottish Criminal Cases Review Commission is considering whether he can appeal. It is expected next year to refer the case back to the appeal court because of new evidence, said to undermine his conviction.

British, US, and Libyan officials have met in London and Geneva to discuss whether Megrahi could be moved to a prison in Libya or neighbouring African country before the decision is made.

A source close to the discussions said that, once Megrahi was back in Libya, the application to the commission could be dropped.

The Foreign Office denied official talks have taken place, but insiders said the US State Department, Musa Kusa, former head of Libyan intelligence, and Foreign Office officials have all been involved.

A source said: "The Libyans are promoting this transfer very quietly. The idea is to allow him to move to a Muslim prison in or near Libya to avoid the case being referred back to the courts. Once there he would probably be able to do as he wished."

Megrahi's wife, Aisha, and family left their safe house in Newton Mearns, near Glasgow, this year and returned to Libya.

Tam Dalyell, former MP, said "people are discussing preparations" and it shows the government "would want to avoid the horror of the commission finding that the verdict was unsafe and . . . to save the face of Scottish justice".

Kathleen Flynn, whose son died in the tragedy, said: "This is absolutely absurd and would mean Megrahi would walk in one door and out the other."

The Foreign Office said it was "not aware of any negotiations to move him back to Libya".

The US State Department said:

"Our preference is that Megrahi remains in Scotland."