Abu Qatada, the firebrand preacher once described as "Osama bin Laden's right-hand man in Europe", has been granted bail with a 22-hour curfew by the Special Immigration Appeals Commission.

The move comes just over a month after the Jordanian national won his fight against deportation from Britain back to his homeland. Appeals are pending.

Home Secretary Jacqui Smith said she was "extremely disappointed" at the decision and would "take all steps necessary to protect the public".

(Article continues below)

The move comes weeks after the Government's anti-terror policy was dealt a second massive blow when the courts forced the Home Office to abandon its deportation case against 12 other terror suspects.

At the time, Home Office minister Tony McNulty said Qatada would not be released from jail and pledged to appeal against the ruling.

In a separate case, two Libyans known only as AS and DD won their appeals against deportation.

The decision led the Home Office to drop the deportation case against them and 10 other Libyans suspected of terrorism.