Kolathur Mani was freed on bail from a prison in India's Tamil Nadu state following a directive from a court in neighbouring Karnataka state.

There is a huge reward on Veerappan's head

He has been accused of sending arms and explosives to the bandit Veerappan, said to be hiding in a forest on the Tamil Nadu-Karnataka border.

Veerappan had asked for Mr Mani to be sent to negotiate the release of a former Karnataka state minister, Hannur Nagappa, abducted by the outlaw.

The Karnataka Government came close to conceding the demand but before it complete legal formalities, Mr Nagappa's body was discovered in a jungle.

Police have accused Veerappan of executing the former minister although the circumstances of his death are still unclear.

Release

Mr Mani was lodged in a prison in the town of Trichy in connection with another police investigation.

Since his arrest in March last year he has been kept in different prisons in the two states.

Mr Mani had successfully negotiated the release of Kannada-language film star Rajkumar from Veerappan's custody nearly three years ago.

The Karnataka and Tamil Nadu governments have launched a massive effort to capture Veerappan, offering a huge reward.

So far, their efforts have failed mainly because they say they have little knowledge of his hideouts.