British Justice Secretary Jack Straw said on Sunday that trade deals with Libya had no bearing on the decision to free the Lockerbie bomber Abdelbaset Ali Mohmed al Megrahi, Britain's Skynews reported.
Straw made the remarks after leaked letters apparently showed he decided two years ago it was in Britain's interests to make Megrahi eligible for return to Libya.
The Sunday Times reported that the British government made the decision after discussions between Libya and BP over a multi- million-pound oil exploration deal had hit difficulties, which were resolved soon afterwards.
Straw insisted that Scotland always had the final say and claimed that the issue is irrelevant as Megrahi's release eventually came on compassionate grounds.
He said the proposed exclusion of Megrahi from the prisoner transfer scheme had been dropped because it "went beyond the standard form."
On August 24, Scotland's Justice Secretary Kenny MacAskill said the decision was based neither on political, diplomatic nor economic consideration as the Scottish Parliament was recalled a week early from summer recess to take part in an emergency session, with members of the parliament to quiz MacAskill about his decision.
MacAskill stressed that the release were based on the ideals of the Scottish legal system and compassionate grounds, adding that applications were lawfully made for the release of Megrahi and the government will fully cooperate in any inquiry into Megrahi's release.
MacAskill formally announced Megrahi's release on August 20 in Edinburgh, saying the man, who has terminal cancer, was allowed to return home to die after serving eight years of a 27-year minimum sentence on charges of murdering 270 people, including 189 Americans when a Pan Am plane blew up over Lockerbie in December 1988.
British Prime Minister Gordon Brown said he was "angry and repulsed" by Libyan welcome for Megrahi and insisted that his resolve to fight terror is absolute.
The British Foreign Office has also dismissed reports that ministers in London actively encouraged the Libyan's release.
Megrahi reportedly flew out of Britain as a dying man deserving of compassion and landed in Libya a national hero when thousands of people gathered at Tripoli airport to welcome him as he stepped down from Libyan leader Muammar Gaddafi's private jet.