THE father of murdered British hostess Lucie Blackman today denied that he accepted a "blood money" payout over the death of his daughter.

Tim Blackman was paid 100 million yen, about £453,797, by a college friend of Joji Obara, who is currently on trial for allegedly abducting the 21-year-old, then raping and killing her before disposing of her body.

Mr Blackman's ex-wife and Lucie's mother has described the payout to the Isle of Wight company director as "blood money".

He denied the allegation and said a substantial amount of the money will go to the Lucie Blackman Trust while the rest is likely to be used to support the Blackman family in the future.

But the decision has angered Lucie's mother Jane Steare. She is reported to have said: "I'm certainly not negotiating with Obara now. It's up to my ex-husband if he wants to. I think it's disgusting to offer blood money."