An Algerian terror leader who allied himself with Osama bin Laden has been killed, it was reported today.

A group linked to al-Qaida was behind the Sahara Desert kidnapping of 17 European tourists who were free today after more than two months in custody, the Algerian army said.

The Algerian army is hunting a group of armed Islamic rebels hiding in the eastern scrubland that is believed to count two al-Qaida members among its ranks.