One of the Labour donors caught up in the cash-for-honours controversy has admitted discussing receiving a life peerage with the party's chief fundraiser.
But Sir Christopher Evans insisted he was never offered anything by Lord Levy in return for financial assistance, and said the pair - who have both been arrested in connection with the inquiry - were "dispensable pawns in a bigger game".
In a thinly-veiled warning to Scotland Yard and Downing Street, Sir Christopher also indicated he would not remain "silent much longer" if the affair dragged on.
The millionaire's dramatic intervention came in a letter to about 30 business partners in his company, Merlin Biosciences. It was written after he answered routine police bail.
Sir Christopher stated that, in light of heavy speculation in the press, he wanted to extend them the "courtesy" of an update on the investigation.
"It is my deepest and sincere conviction that I have done nothing wrong here at all and I have repeatedly made that clear to the police."
He wrote that he had been a long-term backer of and donor to the Labour Party, and in late 2004 Lord Levy had approached him for £1m to help with the general election campaign.
"I resisted, he pushed. Eventually I decided to offer the Labour Party a loan of £1m, but I made it clear over the following months that I wanted a formal written Loan Agreement with a commitment to repay that loan by the end of 2006."
He insisted his loan was motivated solely by his support for the party and the "Blair vision".
"I certainly did not do it because Lord Levy ever made any offer to procure a peerage or guarantee that he could do so. He never had such conversations with me and prior to these allegations I had never heard of him offering or dealing in such honours at all."
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A spokesman for Sir Christopher refused to comment on the letter, but said he had consistently protested his innocence. Downing Street also refused to comment.
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