A SUSPECTED terrorist leader with links to Osama bin Laden could be being held by the security services in a North-East safe house, it was claimed last night.

Muslim cleric Abu Qatada, who disappeared from his home in London, is accused by US authorities of being a key influence in the September 11 attacks.

US magazine Time says it has been told by senior European intelligence officials that Abu Qatada and his family are being housed by British intelligence services somewhere in the North of England.

It is thought he could have turned "supergrass" for MI5 in return for assurances that he cannot be arrested or expelled.

Last night, terrorism expert David George, of Newcastle University, fuelled speculation over his whereabouts by claiming a deal could have been struck involving a North-East police force.

Mr George said: "There is a track record of people being put in the North-East by the authorities and safe housed with the co-operation of the likes of Northumbria Police."

Abu Qatada went missing last December after the Government introduced new anti-terrorism rules that could have seen him imprisoned.

He has appeared on the list of suspected Islamic terrorists issued by the United Nations after September 11.