The British government is expected to pay millions of pounds in compensation to former terror suspects held at the US detention centre at Guantanamo Bay in Cuba and other locations.

It follows agreement to settle a series of High Court actions in London brought by a dozen former prisoners.

Britain's Cabinet Office confirmed last night that ministers would be making a written statement to the House of Commons today updating MPs on the situation.

The allegations include claims that the British government knew the prisoners were being illegally transferred to Guantanamo Bay but failed to prevent it.

There are also allegations that British security and intelligence officials colluded in their torture and abuse while they were held abroad.

UK media reports say the settlement followed negotiations held over the past few weeks, which were authorised by British Prime Minister David Cameron after a court ruling ordering the disclosure of confidential documents.

With some 500,000 documents said to be involved, Mr Cameron said that vetting the material would absorb too much time for Britain's security services.