Kidnapped British man is beheaded by al Qaeda

Tourist Edwin Dyer, 60, was abducted four months ago close to the border between Niger and Mali while on a trip to a music festival and cultural centre dedicated to the nomadic Tuareg people.

Al Qaeda's North African wing said on its website: "The British captive was killed so that he, and with him the British state, may taste a tiny portion of what innocent Muslims taste every day."

It said disbelievers would be "smitten in the neck". The news came as President Barack Obama began a tour of the Middle East.

Gordon Brown said: "I utterly condemn this appalling and barbaric act of terrorism. My thoughts are with Edwin Dyer's family. I offer them the condolences of the whole country.

"I want those who would use terror against British citizens to know beyond doubt that we and our allies will pursue them relentlessly, and that they will meet the justice they deserve."

The terrorists said the beheading had been carried out after a deadline for the release of Qatada from Long Lartin high security prison in Worcestershire passed without response.

Mr Dyer's ordeal started when Tuareg tribesmen attacked his group of tourists travelling back into Niger from a festival of nomad culture in the neighbouring west African country of Mali on 22 January.

The captives are then believed to have been sold to Algerian al Qaeda terrorists operating in Mali.

Four other hostages, including two Canadian diplomats, were released in Mali in April, after negotiations with al Qaeda in the Islamic Maghreb, the terror group's North African wing. But Mr Dyer and a Swiss tourist, Werner Greiner, were kept hostage.

The kidnappers, led by Abdelhamid Abou Zeid, one of the most senior figures of al Qaeda in the Islamic Mahgreb, had demanded the release of Qatada, currently awaiting extradition to Jordan on terror charges.

Although ministers refused to meet that demand, secret negotiations involving the Malian government and others had been taking place in a bid to secure Mr Dyer's freedom. Foreign Secretary David Miliband said: "Our immediate thoughts are with his family. This is a terrible moment for them, in which their worst fears have been confirmed."

Mr Miliband added that Britain would continue to work to secure the release of the remaining hostage and also vowed to try to track down Mr Dyer's killers. He said: "Our commitment to tackling international terrorism remains unchanged."

Ken Bigley, an engineer from Liverpool who was kidnapped in Baghdad in September 2004, was also beheaded. Later that year aid worker Margaret Hassan, who appeared on a video begging not to "die like Ken Bigley", was also murdered. It is believed she was shot.

Osama bin Laden today claimed in a recording broadcast on Al Jazeera televison that Mr Obama had planted seeds for "revenge and hatred" towards the US in the Muslim world.

Bin Laden said the President was continuing in the steps of his predecessor George W Bush and told Americans to be prepared for the consequences of the White House's policies.