British sources denied Lyall Grant had intervened on behalf of Musharraf, but stressed the need to avoid any 'distraction' from creating regional stability, the Daily Telegraph said.

Musharraf is facing charges of acting illegally in imposing emergency rule and ordering the house arrest of seven Supreme Court judges in November 2007.

He could be forced to give evidence in Pakistan if Islamabad presses for his extradition.

British media have recently speculated that Musharraf could have to spend a prolonged period in exile but Sharif, whom Musharraf ousted in a military coup in 1999, is said to be determined to bring the former army chief to trial.

The Daily Telegraph said Sharif believes Musharraf must also face treason charges to discourage military chiefs from seizing power in the future, although President Asif Ali Zardari opposes such a move. Conviction on treason charges carries the death penalty.