The Crown Prosecution Service has received a final report on a police probe into Mike German, the Liberal Democrat leader in the Welsh Assembly.

It has also been disclosed that South Wales Police have interviewed Mr German about expenses claims made by him whilst he was heading the European Unit of the exams body, the WJEC.

Mike is looking forward to getting back to work

Welsh Lib Dem chief executive Chris Lines

Mr German has always denied any charge of wrong-doing.

Last July, Mr German decided to step aside temporarily as the Assembly's Deputy First Minister because of the police inquiry.

On Tuesday night, BBC Wales learned that a detective from South Wales Police had submitted the final file on the matter to the CPS, which will decide whether or not a prosecution should be carried out.

Welsh Liberal Democrats chief executive Chris Lines welcomed the new development, saying it clearly meant the investigation was approaching an end.

The WJEC called in South Wales Police last summer

Mr Lines said: "Mike is looking forward to getting back to work.

"It is very close to the end. He has been interviewed under caution by police and co-operated fully and answered all the questions asked.

"He has been frustrated that it has taken this long. He is confident that the matter will come to a conclusion."

Mr German expressed his regret at his continued absence from the Welsh Assembly's cabinet at a party conference last month and thanked fellow party members for their loyalty over the past year.

Portfolio

He claimed at the start of the investigation that it was a politically-motivated witch hunt by Labour "local government barons" who opposed the Liberal Democrat coalition with Labour at the Welsh Assembly.

Replaced by First Minister Rhodri Morgan in the economic development portfolio, Mr German's former post was later handed over to former business minister Andrew Davies.

Culture minister Jenny Randerson stepped into the role of acting deputy first minister.