British forces in tanks and helicopters stormed an Iraqi jail tonight to rescue two service personnel who were arrested after allegedly shooting dead a local policeman and wounding another, the governor of Basra said.

The two men had been taken to the Basra jail after violence erupted earlier today in the southern Iraqi city.

Photographs of the two – thought to be special forces officers – were taken and released to the media, showing them bandaged and bloody.

British troops had arrived at the police station where the two men were being held and encircled the building.

They were attacked by demonstrators with rocks and petrol bombs.

One soldier was seen engulfed by flames tumbling from his tank and gunfire was exchanged between the two sides, leaving three soldiers injured and two civilians dead.

Later, more than 10 tanks and helicopters broke down the walls of the jail in the rescue operation to release the two arrested servicemen.

It was also reported that 150 Iraqi prisoners escaped in what Mohammed al-Waili, the governor of Basra, described as a “barbaric, savage and irresponsible” act.

The MoD refused to comment after officials said that the two men were undercover officers dressed as Arabs.

The spokesman said: “We can confirm that the two military personnel have been released.”

Mr al-Waili said: “A British force of more than 10 tanks backed by helicopters attacked the central jail and destroyed it. This is an irresponsible act.”

He said the British force had spirited the prisoners away to an unknown location.

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