Paul Martin was handed over to a delegation from the British consulate and driven in an armoured vehicle to the Erez crossing with Israel.

Martin is the only foreigner to be arrested by Hamas since the democratically elected group seized power in Gaza in June 2007 after driving out forces loyal to Palestinian Authority president Mahmud Abbas.

He was arrested on February 14 in a Gaza courtroom while testifying for a friend accused of "collaborating with Israel." Zaim said he was being held on a security charge.

The Hamas interior ministry had accused Martin of "violating Palestinian law and security in the Gaza Strip."

Hamas swept the last Palestinian parliamentary elections held in January 2006.

Besieged-Gaza is still considered under illegal Israeli occupation as Israel controls air, sea and land access to the Strip.

A British parliamentary delegation that returned from the Gaza Strip on Monday has welcomed the release of Martin, after the group raised his detention with Hamas officials.

The delegation from the Britain Palestine All Party Parliamentary Group (BPAPPG) raised the issue of Martin's imprisonment during a meeting with Gaza's Justice Minister, Faraj Al-Guol, on Sunday.

They welcomed Thursday the fulfilment of a commitment to release Martin as a "gesture of goodwill to the delegation."

Lord David Steel, who led the delegation and personally discussed the issue with Al-Guol, as well as with Deputy Foreign Minister Dr Ahmed Yousef, welcomed the release.

"I am delighted that Paul has been released into the hands of British officials. We twice raised the issue of his detention during meetings with the government on Sunday, and were encouraged at the time by their commitment to release him as a gesture of goodwill towards our visit. I am pleased that this assurance has been fulfilled."

Lord Steel said that the release of Martin showed that dialogue with Hamas could be productive.

"Only by engaging with organisations such as Hamas, who after all are the elected representatives of the Palestinians, will we see progress in the Middle East. We cannot implore people to adopt democratic means and then simply refuse to engage with the winners of elections."

Graham Bambrough, Parliamentary Officer at the Council for Arab British Understanding (CAABU) who coordinated the delegation's visit, echoed Lord Steel's comments.

"I think this only goes to emphasise that dialogue, rather than isolation, is the best way forward," he said.

Richard Burden MP, Chair of the Britain Palestine APPG, also welcomed the release.