Iranian President Mahmoud Ahmadinejad today announced that his government would release the detained 15 British sailors and marines as a gift to the British people.

He pardoned the sailors and announced their release minutes after he gave medals of honour to the Iranian coastguards who intercepted the sailors and marines, saying Iran will never accept trespassing of its territorial waters.

"On behalf of the great Iranian people, I want to thank the Iranian coastguard who courageously defended and captured those who violated their territorial waters, the president told a press conference.

He then interrupted his speech and pinned medals on the chests of three coastguard officers involved in capturing the British sailors and marines in the northern Gulf on March 23.

"We are sorry that British troops remain in Iraq and their sailors are being arrested in Iran," Ahmadinejad said.

He criticised Britain for deploying Leading Seaman Faye Turney, one of the 15 detainees, in the Gulf, pointing out that she was a woman with a child.

"How can you justify seeing a mother away from her home, her children? Why don't they respect family values in the West?" he asked of the British government.