A decision has been reached in the case of Lockerbie bomber Abdel Baset al-Megrahi and will be announced Thursday, the Scottish government said, AP reported. British news networks reported that he would be released on compassionate grounds. Scottish Justice Minister Kenny MacAskill said he had informed the families of the victims that he had come to a decision about what to do with the terminally ill al-Megrahi and would make a formal announcement Thursday afternoon in Edinburgh, the Scottish capital. Sky News television reported Wednesday that al-Megrahi will be released from prison on compassionate grounds. The BBC has also previously reported that al-Megrahi would be set free on compassionate grounds, adding that his release had been expected before the end of the week. Neither network cited the source of its information. In Washington, Obama administration officials said Scottish authorities had not formally notified them that al-Megrahi would be released. But they said the administration was working on the assumption that he would be freed. Al-Megrahi was convicted in 2001 of taking part in the bombing of Pan Am Flight 103 on Dec. 21, 1988. The airliner _ which was carrying mostly American passengers to New York _ blew up as it flew over Scotland. All 259 people aboard and 11 on the ground died when the aircraft crashed into the town of Lockerbie. The former Libyan intelligence officer was sentenced to serve a minimum of 27 years in a Scottish prison for the crime, but a 2007 review of his case raised the prospect that al-Megrahi had been the victim of a miscarriage of justice, and many in Britain believe he is innocent. -- SPA