Blair attacks the 'witch-hunt' over Iran hostage fiasco

But he was immediately undermined as evidence emerged implicating Defence Secretary Des Browne in the debacle.

Documents show officials broke Navy rules by failing to get Mr Browne's explicit approval to allow the sailors to sell their stories.

The Queen's Regulations show serving personnel must not profit unless there are exceptional circumstances - but only with "prior approval" of the Defence Secretary.

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Mr Browne has claimed he only "noted" the decision allowing the stories to be sold, meaning he has been misled or the rules were broken.

As pressure on the minister intensified, Mr Blair insisted: "I have no intention of engaging in a witch hunt against people who acted honourably in very difficult circumstances."

His response was posted on the No 10 website and followed a petition submitted to Downing Street by naval personnel calling for "heads to roll" over the decision to allow Faye Turney and Arthur Batchelor to sell their stories.

That petition, which has nearly 3,000 names, states: "We the undersigned petition the Prime Minister to name and sack the person responsible for declaring that members of the armed services can sell their stories to the media."

Mr Blair had distanced himself from the controversy, saying the decision was not a "good idea" while insisting he had not been aware of the plan until after it was finalised.

Conservative MP Mark Lancaster, a Major in the Territorial Army, said: "More and more questions are being asked, but to try to dismiss this is wrong. A lot of people want to know what happened. The Armed Forces and the general public have a right to know."

Former Tory defence spokesman Nicholas Soames said: "The Prime Minister is talking nonsense. If he believes this is a witch hunt he is seriously mistaken."

Chancellor Gordon Brown came to his ally's defence - but failed to comment on the current row. Speaking to reporters in Washington, he said: "I know from my visits to Afghanistan and Iraq how highly Des Browne is regarded.

"He is an excellent Defence Secretary who's been working tirelessly to make sure all our armed forces receive the best possible support whilst they continue to do an outstanding job supporting the democratically elected governments of Iraq and Afghanistan."

But former Labour defence secretary Denis Healey told GMTV's Sunday programme that Mr Browne had made a "mistake".

Former Labour defence minister Lord Gilbert said Mr Browne was "very inexperienced" and allowing the stories to be sold was a "serious misjudgment".

Suspicions that ministers were bent on allowing the captives' accounts to be told were fuelled when it emerged the Ministry of Defence ignored warnings from military officers not to allow the Iran hostages to cash in on their ordeal.

Colonel Bob Stewart, who led British troops in Bosnia, telephoned the MoD two days before the stories were published telling them it would be a "grave mistake" and that the decision would backfire.

An MoD official said they would "get back to him" but the call never came, Colonel Stewart has told friends.

An offer by the Press Complaints Commission to intervene during media negotiations for the stories was similarly rebuffed.

A PCC spokesman said: "On April 5 we approached the MoD to offer our services through them to the hostages and their families in case problems arose with media interest."

He said they had no reply.