A CAR mechanic has won £100,000 in libel damages after a national newspaper claimed he was “a central figure in a dangerous and militant Islamic cell”.

A News of the World double-page spread accused Shakil Akhtar of channelling funds to banned terrorist organisations.

A major police search of Mr Akhtar's High Wycombe home followed the day after the article – which bore the headlines 'Evil on Benefits' and 'Sick parasites spawn terror' – was published on February 3 last year, leading to him having to move his family out.

But today the newspaper's publisher, News Group Newspapers Ltd, accepted Mr Akhtar had no involvement with any terrorist activity.

His solicitor, Edward Yell, told London's High Court: "The truth of the matter, which the News of the World now accepts, is that Mr Akhtar is not and never has been involved in the funding of terrorism in any way whatsoever, and nor is he or has ever been a member of a militant cell.

"The News of the World now accepts that he has no connection with terrorism whatsoever and in fact earns his living honestly as a car mechanic in High Wycombe.

"Notwithstanding the prolonged police investigation, Mr Akhtar has never been arrested or charged over any offence related to this or any other matter."

Mr Yell told Mr Justice Eady: "Mr Akhtar would like to make it clear that he does not support or condone violence against British forces in Afghanistan, or indeed anywhere.

"Mr Akhtar and his family have been caused great hurt, distress and fear by the baseless allegations which were made against him by the News of the World.

"He is a devout Muslim and his standing in the local community has been badly affected by the article and we take the opportunity to reassure his friends and neighbours that there was no truth in these allegations."

He added News Group Newspapers Ltd had agreed to pay Mr Akhtar £100,000 in libel damages and legal costs and will publish an apology.

Speaking after the hearing, Mr Yell added: "Mr Akhtar has had his life turned upside down by the grievous allegations made by the News of the World, and the police investigation which followed publication of their article.

"He welcomes the fact that that the News of the World now accepts, as the police did many months ago, that there was not a shred of truth to these allegations and looks forward to putting this matter behind him."