No 10 in denial over Iran story row

Number 10 also issued a flat denial that it had been involved in negotiations with media outlets interested in buying the accounts.

The move comes amid growing pressure on the Government to explain exactly how the decision was taken, and when senior ministers were aware of the Navy's plan.

A Downing Street spokeswoman said: "As has already been made clear, no-one in Number 10 - either the press office or officials - had anything to do with decisions taken by the Navy regarding their personnel receiving payments for media interviews.

"In addition, no-one in Number 10 had any involvement in the negotiations around those interviews."

Defence Secretary Des Browne has accepted "full responsibility" for the situation, while insisting the decision was taken by the Navy. He slapped a ban on further interviews on Monday, after accounts by two of the captives appeared in the media.

The Tories kept up their attack over the controversy, with David Cameron accusing Downing Street of being in "complete confusion". Shadow foreign secretary William Hague also said he did not believe the "full picture" had yet emerged concerning the decision.

He told the BBC Radio 4 Today programme: "It seems strange to us that Number 10 did not have a greater involvement in this.

"In a very centralised administration where Number 10 are routinely consulted by all Government departments, it seems very odd that the Prime Minister read of this in the Sunday newspapers, they say, when David Cameron and I and (shadow defence secretary) Liam Fox all knew about this on Saturday."

The Prime Minister admitted on Wednesday that authorising the 15 personnel to sell their stories had not been a "good idea", but stressed he did not know of the decision until after it was taken. Mr Blair's comments were viewed as increasing the pressure on Mr Browne, but the Tories have so far stopped short of calling for his resignation, despite Mr Hague accusing him of a "serious ministerial failing".