Disgraced journalist Martin Bashir is still being paid by the BBC despite a damning report into his “deceitful behaviour”.

BBC boss Tim Davie admitted Bashir was on the broadcaster’s payroll while working out his three months’ notice period.

Bashir resigned before the findings of an independent inquiry by Lord Dyson was published.

The Panorama reporter faked documents to inveigle his way into the Spencer family to secure his world exclusive interview with Princess Diana.

Mr Davie said:

“Martin Bashir offered his resignation prior to us seeing the Dyson report.

“There were three reasons why I accepted the resignation.

“The first was there were very significant medical care issues, which, in terms of Martin Bashir as a staff member, regardless of all the situation around it, is a factor.

“The second is it allowed a clean break with no pay-off, which I thought was in the licence fee-payers’ interest to make sure that there was a clean process.

“The third was there was no restraint in us getting to the truth. This was not an honourable discharge.”

Mr Davie added the three-months’ notice period was “nearly out”.