The Briton of Indian origin arrested by the Federal Bureau of Investigation on Tuesday for allegedly smuggling a Russian surface-to-air missile into the United States has been identified by The Times, London, as Hekmat Lakhani.

The report, which described Lakhani as middle-aged, said FBI sleuths picked him up in Newark, New Jersey, after a five-month sting operation involving undercover agents from the United Kingdom, US and Russia.

The missile was reportedly recovered from a warehouse in Baltimore.

Lakhani, according to the report, believed the undercover sleuth he was dealing with for the sale of the missile was a go-between to Muslim extremists in the US.

Two other men, jewel dealers who have been accused of preparing to act as money-launderers, were also arrested in connection with the case.

Lakhani, however, is unlikely to face extradition to Britain and will instead be prosecuted through the US courts, the report said.

The undercover operation involved MI6 and MI5, the FBI and the FSB, the Russian domestic security agency. These agencies pooled resources to mount surveillance on the arms dealer, who was living in London.

The missile sought to be smuggled was a Russian Igla surface-to-air system, which has a range of 2.5 miles (4km) and is regarded as one of the most accurate shoulder-launched missiles in the world.

Al-Qaeda-linked terrorists attempted in November last year to shoot down an Israeli airliner taking off from Mombasa, using an older Russian SAM 7 shoulder-launched missile.

Several other reports have also said that Lakhani is may have links with the Al Qaeda.

Lakhani had been a regular traveller to New York since late in 2001 and it was while there that he reportedly boasted to associates that he could obtain weapons, including sophisticated shoulder-mounted missiles.

The FBI became aware of the boasts, although it is unclear whether they had an informer who heard the claims, or were bugging phone calls made by the Briton.

When undercover FBI agents approached Lakhani they are believed to recorded him talking favourably about Osama bin Laden.

He is believed to have said bin Laden was a 'good thing' for ordering the September 11 terror attacks and in another tape told the 'buyer' that Americans were 'bastards'.

With inputs from Shyam Bhatia in London