Mrs McDougall is the widow of a police reservist

The extension to her contract - which was supposed to expire this week - has been granted to allow her more time to conclude her report.

However, the High Court is being asked to quash the appointment.

The case has led to a senior QC investigating if the Secretary of State misled the High Court.

Peter Scott was appointed after Mr Justice Girvan asked the Attorney General to investigate the case.

The judge ruled that Mr Hain acted "for an improper political purpose" in appointing Bertha McDougall.

In the High Court on Thursday, an affidavit appeared to give her an extension until the end of January.

The affidavit was sworn by John Clarke, the civil servant heading the Victims Unit, who recalled a meeting last October when Mrs McDougall told civil service chief Nigel Hamilton that she would not be able to complete her final report until the second week in January.

Mr Clarke stated: "Recognising that the final report was the most important function of the appointment, Mr Hamilton acknowledged that it would be possible to extend her period of appointment until the end of January to facilitate her."

The dispute over the tenure of Mrs McDougall's term of office came to a head in the High Court last Friday when counsel for Secretary of State Peter Hain said she had not been given an extension and then said he had fresh information which suggested that might not be the position.

Brenda Downes, from west Belfast, challenged the appointment of Mrs McDougall, widow of a police reservist.