Foreign cannabis companies are setting up in the UK in the hope the drug will be legalised for recreational as well as medicinal use, The Daily Telegraph has learned.

Although the Government has repeatedly stated that it has no intention of legalising cannabis for recreational use, many believe laws will eventually be relaxed, opening a lucrative new market for international cannabis companies.

North American firms are selling medicinal cannabis, which was legalised in November, and CBD cannabis oil, which is legal because it does not contain the psychoactive substance in cannabis, THC.

Some of the companies operating in the UK also sell cannabis for recreational use in Canada, where the drug is legal, and America, where it is legal in some states.

This week, executives from cannabis companies from across the world will converge on London for the Cannabis Europa Conference, which will address the market for selling cannabis products in Europe.

A panel featuring Norman Lamb and Crispin Blunt, both MPs interested in drug policy, will be chaired by Andrew Neil.