Questions are being asked of the Home Office after it emerged that one of the world's most wanted terrorists was granted political asylum in Britain.
Anas al-Libi reportedly lived in Manchester after arriving in the country in the mid-1990s.
The al Qaeda terrorist was seized on Saturday in the Libyan capital Tripoli.
The 49-year-old was accused by the US of involvement in the 1998 American embassy bombings in east Africa which killed more than 220 people.
The Times said he had been living in the Cheetham Hill area of Manchester.
Al-Libi, also known as Nazih Abdul-Hamed al-Ruqai, was arrested by the Metropolitan Police the following year but was released and later fled Britain.
Detectives are believed to have found an al Qaeda manual at his home which advised Osama bin Laden's followers on how to execute terror plots.
He was on the FBI's Most Wanted list and there was a five million-dollar reward for information relating to his capture.
US prosecutors claimed the computer expert aided the east Africa bombings by carrying out research and taking
photographs of the embassy in Nairobi in 1993.
His son, Abdullah al-Ruqai, told The Associated Press that his father was part of the Libyan Islamic Fighting Group, an Islamic militant group opposed to Muammar Gaddafi.
Many of the organisation's members were forced to flee the country, and al-Libi is believed to have spent time in Sudan in the 1990s before moving to Britain.
Al-Libi's son also said the family subsequently spent time in Afghanistan and Iran before returning to Libya in 2010.
Keith Vaz, chairman of the Home Affairs Select Committee, said the case would be raised with the Home Secretary when she appears before MPs.
Vaz said: "This case raises serious questions about the motives behind asylum and national security decisions in the UK.
"It is not the first time that someone, who has been brought to the attention of the authorities and released, has gone on to be linked to further terrorist activity.
"I will be raising these concerns with the Home Secretary when she appears before the committee on the 15th October."