The brother of a Birmingham man killed in the 2002 Bali bombings last night said he feared further terrorist activities following the release of a militant cleric linked to the attack.

Father-of-four Matthew Arnold, whose older brother Timothy died in the atrocity, said he felt Abu Bakar Bashir's freedom would be a boost to Islamic extremists.

"His release will send a signal to jihadists that you can be the head of a terrorist group and still be free," he said. "It will probably lead to more terrorist activities."

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Bashir, aged 68, was convicted of criminal conspiracy over the two nightclub blasts that killed 202 people, including 28 Britons.

He is the alleged spiritual leader of the al Qaida-linked South-east Asian militant group Jemaah Islamiyah, although he denies being involved in violent acts.

His two-and-a-half year sentence was cut last year after 53,000 Indonesian prisoners were given reductions in their jail terms as part of the country's independence day celebrations.

Mr Arnold, who lives in Harborne, said he accepted the Indonesian legal system's decision to release Bashir.

"He was tried and convicted under Indonesian law and I accept that this is absolutely appropriate," he said.

"I would not want anyone to be charged and punished for a crime that they did not commit."

But he appealed to the US to give access to a key suspect called Hambali, believed to be the deputy leader of the Jemaah Islamiyah.

Hambali - real name Riduan Isamuddin - is accused of masterminding the bombings and was captured by the US in 2003.

"My concern is that not e nough evidence exists against Bashir because Hambali is held by the CIA," Mr Arnold said.

"The Americans need to provide access to him so he can be questioned. The delay of the CIA to hand over this character means the full story of the bombings may never be pieced together."

Timothy Arnold, a former pupil at King Edward's School in Edgbaston, had been visit-ing Bali on a rugby tour when he was killed.

He had moved from Birmingham to Singapore to work, and was engaged.

"He was a bright, generous and gentle man with a quick dry wit, and a much respected and capable lawyer," Mr Arnold said. "I was very close to him."

The UK Bali Bombings Victims Group released a statement earlier this week saying Bashir's release was a cause for "great sadness and pain" for both survivors and the relatives of those killed.

"He will be able to return to his family, something the victims of the bombing will never be able to do," the statement said.

"He will be able to return to normal life, something many thousands of people around the world can never do as a result of the trauma, bereavement and injury sustained as a result of the bombing he was found guilty of contributing to."

Bashir was given a hero's welcome by around 150 supporters as he walked out of Jakarta's Cipinang prison.

He has returned to the boarding school he founded in the central Java province, which is notorious for spawning many of Indonesia's most deadly terrorists including those involved in the Bali attack.