|PIC1|Iranian President Mahmoud Ahmadinejad has met with some of the 15 British military personnel held in Iranian custody for almost two weeks, shortly after vowing to set them free as a "gift" to Britain.

President Ahmadinejad shook hands, smiled and chatted with the detainees who were dressed in suits. One of them was heard to comment in English: "We are grateful for your forgiveness," according to Iranian state television.

Ahmadinejad earlier accused Britain of not being "brave enough" to admit it had made a mistake and strayed into Iranian waters - something that the British Government has strongly denied since the incident began.

The announcement came at the end of a news conference in which President Ahmadinejad also awarded medals to the naval commanders who captured the 15 Britons in the northern Gulf on March 23.

He said the Britons would be released immediately and taken to an airport.

The news follows widespread condemnation from world leaders at Iran's capturing of the navy personnel. US President George Bush condemned Iran's "inexcusable behaviour", while German Chancellor Angela Merkel said Britain had the "full solidarity" of the European Union.

Last week prayers were said for the imprisoned group at leading Seaman Faye Turney's home church. Rev Sue Caddy, vicar of Shelton and Oxon parish, said, "We are very worried about her (Turney), we have been praying for her, we are praying for their safe release and that they will be home soon with families and communities."

The Roman Catholic Bishop of the Forces appealed to the Supreme Leader of Iran, Ayatollah Ali Khamenei, earlier in the week to help secure the release of the sailors and marines.

Earlier this week, Bishop Tom Burns called on Khamenei, the country's spiritual leader and highest authority, to be generous with the captives, saying he had "the unique opportunity to gain the world's respect" for Iran's Islamic laws and values.

As President Ahmadinejad announced the release of the captives, he said: "They are free after this meeting and can go back to their families.

"I'm asking Mr Blair to not put these 15 personnel on trial because they admitted they came to Iranian territorial water," he said, referring to taped "confessions" made by the British sailors and marines.

"I ask Mr Blair, instead of occupying the other countries, I ask Mr Blair to think about the justice, to think about the truth and work for the British people not for himself."

Britain continues to tell Iran that the 15 were in Iraqi waters under a UN mandate when they were captured nearly two weeks ago, and believes that the confessions were extracted under duress.

Iran maintains that the sailors were picked up in Iranian waters.

"Unfortunately the British Government was not even brave enough to tell their people the truth, that it made a mistake," said President Ahmadinejad.

"We have every right to put these people on trial. But I want to give them as a present to the British people to say they are all free."

A spokesman for Prime Minister Tony Blair responded: "We welcome what the president has said about the release of our 15 personnel. We are now establishing exactly what this means in terms of the method and timing of their release."

During the address, President Ahmadinejad also criticised the US-led invasion of Iraq and Israel's war in Lebanon.