PREMIUM --

Peter Foster leaves Carole Caplins home in north London. The convicted fraudster whose dealings with Cherie Blair have sparked two weeks of turmoil for Downing Street, today said rumours that he was leaving the country before Christmas were not true.

* The 40-year-old Australian, who was involved of the purchase of two Bristol flats on behalf of the Prime Minister's wife, said reports over the weekend that he was set to quit Britain and give up his legal bid to stay were untrue and blatant lies . Foster made the comments as he left the flat belonging to his girlfriend Carole Caplin, friend and lifestyle advisor to Mrs Blair. Ms Caplin left her home in Holloway, north London, in a separate car just minutes before Foster.