Home Secretary Jacqui Smith faces a claim for £100,000 damages by the American radio ‘shock jock’ she banned from entering Britain.

Broadcaster Michael Savage has employed top UK law firm Olswang to sue Ms Smith for libel after she put him on the Home Office’s 16 ‘least wanted’ list.

Mr Savage said he was ‘outraged’ the Government had put him in the same category as Islamic hate preachers and terrorists.

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The letter from Olswang, due to land on Ms Smith’s desk tomorrow, accuses her of making ‘serious and damaging defamatory allegations’ against him.

It says Mr Savage, whose show The Savage Nation has eight million listeners in America, has asked for ‘substantial damages’.

The Mail on Sunday has been told he is demanding £100,000.

Mr Savage says ‘lunatic’ Ms Smith had no right to put him on the same list as a former Ku Klux Klan grand wizard, a skinhead gang leader and a Hezbollah militant who served 30 years in prison.

The lawyers’ letter states: ‘Our client requires the payment of a substantial sum in damages to be agreed and retraction of the allegations.

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