The Home Office yesterday agreed to pay an undisclosed sum in an out-of-court settlement with a British citizen of Bangladeshi origin who was deported to Pakistan in error.

The settlement, thought to be for tens of thousands of pounds, was agreed as Tula Miah, 34, was about to take his compensation claim to the high court.

Miah, from south London, who was diagnosed as schizophrenic in his teens, was put on a plane by immigration officials after they mistook him for a Pakistani failed asylum seeker and absconder.

He claimed he had been held in chains and beaten in Pakistan, partly because his custodians were angry that he could not communicate with them.

Miah came to Britain from Bangladesh at the age of 12 and spoke no Pakistani languages.

As a condition of the settlement, he and his lawyers are not allowed to discuss its term or even the fact that it has been reached.

A UK Border Agency spokesman said: "The UK Border Agency carries out all removals with dignity and compassion, and takes very seriously any claim that proper procedures have not been followed.

"We are currently undertaking the biggest shake-up of our border security in over 40 years. This includes locking people to one identity by linking their fingerprints to a secure database and to any visa issued around the world.

"Later this year, we will roll out ID cards for all foreign nationals. This will make it easier than ever to confirm people's identity and remove those with no right to be in the UK."