Libyan leader Colonel Muammar Gaddafi's son Saif was reported to have said that the decision to free Megrahi from a Scottish prison was tied to a deal between the UK and Libya.
However the Foreign Office insisted that there was no deal between London and the oil-rich north African state in relation to Megrahi and that his release on compassionate grounds was purely a matter for the Scottish authorities.
"There is no deal. All decisions relating to the Megrahi case have been exclusively for Scottish ministers, the Crown Office in Scotland, and the Scottish judicial authorities," a spokesman said.
"No deal has been made between the UK government and the Libyan government in relation to Megrahi and any commercial interests in the country."
Speculation that there had been some form of agreement was fuelled by the disclosure that Business Secretary Lord Mandelson met Saif al-Islam Gaddafi during his recent holiday on the Greek island of Corfu.
Megrahi, who has terminal prostate cancer, was met with a hero's welcome by people who met the flight at Tripoli. He was freed by Scottish Justice Secretary Kenny MacAskill on compassionate grounds after serving seven years of his life sentence for 270 counts of murder.
Megrahi has also met Col Gaddafi in Tripoli. TV footage showed the pair embracing and speaking, with the Libyan leader also meeting members of the freed bomber's family.
The Libyan news agency Jana reportedly quoted Gaddafi congratulating the Scottish authorities for "their courage and for having proved their independence despite the unacceptable and unreasonable pressures they faced".
In the interview with The Times, Megrahi said he was "very, very happy" to be free. "This was my hope and wish - to be back with my family before I pass away ...I always believed I would come back if justice prevailed," he told the newspaper at his Tripoli home.
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