A man accused of being a Russian spy has claimed MI5 have ruined his life.

Peter Hill, 23, spoke out after the Crown Prosecution Service confirmed he will not face trial on explosives charges because there was insufficient evidence to offer a "realistic prospect" of securing a conviction.

This comes a month after it was announced Mr Hill was not to face any charges under the Official Secrets Act after being arrested during an undercover operation in November.

Mr Hill had been detained by officers from the Metropolitan Police in Leeds for allegedly trying to sell military information to the Russians.

He was subsequently bailed under the allegations, but charged under the Explosives Act after items were seized from where he was living in Skipton.

But the former Territorial Army officer-cadet said he believed he had been set up by the authorities, who had approached him and offered him £6,000 for documents.

He said he had no idea why they had contacted him and claimed he did not have any military documents with him when he was arrested in Leeds.

Mr Hill said: "I was innocent all along and they have dropped the charges because there was insufficient evidence against me.

"Obviously I am very relieved, but I have lost six months of my life. I lost my job, my house and almost my relationship with my girlfriend.

"The Government and MI5 tried to stitch me up and the explosive charge was a reserve charge in case the first one did not stand up.

"The items they found were weed killer and sugar which could be found in anyone's house.

"I am now trying to find a new job and trying to get on with my life."

Mr Hill, who had worked at Skipton Building Society, said bail conditions had meant he had been under virtual house arrest, living with his parents.

The former Clitheroe Grammar School student added: "I was always worrying about whether MI5 was following me. They gained access to my email and probably tapped my phone.

"MI5 approached me and offered me money, around £6,000, back in October. They set up a meeting in Leeds and they arrested me when I arrived.

"Seven blokes threw me to the ground. I was stupid enough to fall for it. I was having problems at work, but they claimed I was a spy."

Solicitor Grahame Stowe, who represented Hill throughout the ordeal, said: "This decision is a vindication of what we have said all along - the charges were based on spurious intelligence and had little basis in fact.

"Despite several months of investigation - at the taxpayers' expense - no proceedings have been worthy of pursuing against Mr Hill, yet his career and personal life have been utterly devastated.

"After being detained for five harrowing days, the subsequent investigation led to Peter losing his home and his reputation within the local community being destroyed. Mr Hill is now considering the avenues of redress available to him."

Mr Hill was first arrested last November under Section 1 of the Official Secrets Act 1911 and following police searches, material was allegedly found that led to him being charged under Section 4 of the Explosive Substances Act 1883.

He was living in Lambert Street, Skipton, before losing his house and being forced by bail conditions to return to his parents' home in Colne.