Prime minister David Cameron, fresh from talks with President Obama, has told BBC Radio 5 that Gary McKinnon could serve his time in a UK prison if found guilty of hacking offences.
McKinnon, who suffers from Asperger's Syndrome, faces a potential 60-year jail sentence if his case is tried in the US.
The US has been attempting to extradite McKinnon for years, and the suggestion that such a move could be blocked by the UK government has been raised time and time again.
Now, following amicable talks between Cameron and Obama, it looks likely that this could happen.
Although Cameron said that the talks had raised the possibility of McKinnon serving prison time in the UK, he drew the line at making any firm promises.
"That is one potential outcome and I'll be working very hard to make sure that these things are discussed between the two governments," he said.
"If we can reach a settlement then all to the good. I don't want to make a prediction because there are many difficult issues that have to be worked through."
Obama said in a press conference after the discussions that he hoped to " find an appropriate solution", according to a report in The Guardian.
"I trust that this will get resolved in a way that underscores the seriousness of the issue, but also underscores the fact that we work together," he said.
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