The Government has been accused by a Shropshire MP of “misleading” the family of murdered policewoman Yvonne Fletcher over whether her killer could face justice in Britain.

The Foreign Office has apparently conceded any trial for the shooting – which happened outside the Libyan embassy in London 25 years ago — will take place in Libya.

Reports at the weekend said the agreement had been secretly struck three years ago, when trade deals worth hundreds of millions of pounds were being negotiated with Tripoli.

Shrewsbury MP Daniel Kawczynski, chairman of the all-party parliamentary group on Libya, said ministers had never disclosed the deal.

“I think they deliberately misled us,” he said. “I find it extraordinary that the Foreign Office has tried to mislead myself and the Fletcher family.”

Yvonne’s mother Queenie Fletcher said she had not been informed of a deal.

But Yvonne’s sister Heather reportedly insisted the family had known any trial would probably happen in Libya.

And the Foreign Office said it was “entirely misleading and simply wrong” to suggest there was a secret deal.

“Libyan law did not allow for the extradition for trial in other countries so a trial in Libya was the only outcome that would reflect our determination to see justice done,” a spokeswoman said.

Mr Kawczynski will fly to Libya this month as part of an official cross-party parliamentary delegation to the Middle East.

The trip may also include a meeting with Libyan leader Colonel Muammar al-Gaddafi, of whom he his writing a biography.