Journalist Steve Panter still has the threat of jail hanging over him for contempt of court.

The Manchester Crown Court judge presiding over his contempt hearing has decided to refer the matter back to the Attorney General for a decision.

The Manchester Evening News reporter refused to reveal his sources in the aftermath of a story that named a prime suspect for the 1996 IRA Manchester bomb attack.

The difficulty came to light during a separate hearing when a senior police officer was accused, and later acquitted, of leaking documents.

Steve, now deputy news editor, had told the court that the officer was not the source of the leak that provided information for his story – but declined to reveal where he got the information.

Editor Paul Horrocks said after the policeman was cleared: “Since the not guilty verdict, Mr Panter is now the only person who could face a penalty in connection with the Manchester bomb. It is difficult to contemplate a more ridiculous – and dangerous – state of affairs.

“Not only will journalists themselves feel threatened, but vital sources of information upon which justice and democracy have often depended, will feel compromised.”

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