Frank Gilford, the brother of murdered nurse Yvonne Gilford, handed over a cheque for $1.04m Australian dollars (£400,000) to the Adelaide Women's and Children's Hospital on Tuesday.

Ms Parry was facing the death penalty in Saudi Arabia for the murder of Ms Gilford, until Mr Gilford invoked his right under Saudi law to demand payment as an alternative to the execution of the woman convicted of murdering his sister.

Both Ms Parry, and nurse Lucille McLauchlan who was convicted in Saudi Arabia of being an accessory to murder, have always maintained they were wrongfully accused. Since returning to the UK last month they have vowed to clear their names.

Earlier there was speculation that their lawyers would try to stop the payment to Mr Gilford, as it might be interpreted as an admission of guilt.

Legal costs

Mr Gilford received a payment of £650,000, raised by British companies with interests in Saudi Arabia. Most of the money not donated to the hospital will go towards the legal costs he has incurred.

The money will be used to build a children's day surgery unit, to be named after Ms Gilford.

"She would have been pleased, as I am, that some good has come from her terrible murder," Mr Gilford said before handing the cheque over to a hospital representative at a public ceremony.