Stockholm- An Egyptian national who was handed over to the CIA in 2001 and deported to Egypt in a much-criticized decision is to be awarded damages by the Swedish government, reports said Friday.

Ahmed Agiza's lawyer was quoted as telling the Swedish news agency that her client had accepted the offer of 3 million kronor (450,000 dollars) in compensation.

Agiza was along with Mohammed al-Zari in December 2001 handed over to CIA agents and flown to Egypt where they were suspected of terrorist activities.

The former Swedish government relied on assurances from Cairo that the two men would not be ill-treated at the time, but both men have alleged that they were ill-treated on return according to among others the New York-based group Human Rights Watch.

In July, al-Zari - who remains in jail - was awarded the same amount in compensation. He had reportedly demanded 30 million kronor.

Migration and Asylum Minister Tobias Billstrom in March 2007 said the cabinet had approved that the chancellor of justice should investigate possible demands for compensation.

The government also instructed the Swedish Migration Board to review possible renewed applications for asylum from the two men.

The cabinet decision mirrored recommendations by the UN Human Rights Committee that criticized Sweden over the renditions. (dpa)