Counter-terror police say they met with terror suspect Saleh Jamal in a Beirut prison, but deny offering him a deal if he confessed to a plot to attack Sydney.
Jamal says Australian police offered to return him to Australia if he informed on six terrorism suspects he allegedly recruited, and admits to planning to attack Sydney Harbour.
Jamal, who was the key target in the lead-up to Operation Pendennis recently, says he'll mount a terrorist attack on Australia if he's brought back.
NSW police confirmed reports in The Australian newspaper that officers from the department and the Australian Federal Police (AFP) visited Jamal on numerous occasions in a Beirut prison where he's serving a five-year sentence for weapons offences.
But the NSW police spokesman denied the terror suspect was ever offered a deal.
"I have spoken to the boss of our counter-terrorism command, Assistant Commissioner Norm Hazzard and he has confirmed, contrary to reports, at no time has any NSW police officer offered a deal to Mr Jamal," the police spokesman said.
The Australian newspaper has reported that under the deal, Jamal would serve at least 10 years in a NSW prison and receive a 60 per cent reduced sentence.
But he is alleged to have rejected the deal, saying the six men are close friends of his.
Jamal says he'll try to mount a strike against Australia if he can and would crash a plane into Sydney Harbour Bridge if attempts were made to bring him back.
Comment is being sought from the AFP.