The dead British hostages handed over to authorities in Iraq have been identified as Jason Creswell and Jason Swindlehurst.

The remains of Mr Creswell, originally from Glasgow, and Mr Swindlehurst, originally from Skelmersdale, Lancashire, were handed over to authorities in Baghdad late on Friday. They were among five Britons taken captive in May 2007.

A Foreign Office spokeswoman said they have informed the families "with deep regret".

She added: "Our thoughts are with them at this sad time, and we ask that the media allow them privacy to deal with this news. We continue to do everything we can towards the safe release of the other hostages."

The two men were employed as security guards to protect Peter Moore, an IT consultant from Lincoln who was working in Iraq for a US management consultancy.

Foreign Secretary David Miliband said: "This is a very distressing development. We have never speculated on the outcome of this case although we have been working intensively on it, so the overriding feeling today is one of deep sadness and fear."

The Prime Minister was "saddened and dismayed" by the news, a Downing Street spokesman said.

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