The Mirror is standing by its pictures
The pictures which sparked claims UK soldiers abused Iraqis were staged at a British barracks by Territorial Army (TA) members, it has been reported.
Sources told the Daily Telegraph the photographs were set up in a Bedford MK lorry at Kimberley TA base in Preston.
Defence Secretary Geoff Hoon said it was likely the pictures were a hoax.
The regiment accused of the abuse has demanded an apology from the Daily Mirror for publishing the images, but the paper has stood by their accuracy.
The photographs appeared to show soldiers from the Queen's Lancashire Regiment urinating on a prisoner and striking him with a rifle.
But members of the military have disputed aspects of the equipment and uniform worn by the soldiers.
Kimberley Barracks is home to the Lancastrian and Cumbrian Volunteers - the local Territorial Army infantry unit for Lancashire and Cumbria.
A Ministry of Defence spokeswoman said the Telegraph story about the alleged mock-up was "totally
"The Special Investigation Branch are conducting a report. They have not
concluded their report so we're unable to comment."
In his Commons statement, Mr Hoon said there were "strong indications" the vehicle in the Mirror photos, published last week, had not been in Iraq when the abuse allegedly happened.
"Additional lines of inquiry are being pursued to corroborate
this," he said.
The minister later told Channel 4 News: "It is important that the Mirror now answer why it is they have perpetrated this hoax."
A member of the Queen's Lancashire's regimental council told BBC News that Mr Hoon's statement "vindicates our case".
But Mirror editor Piers Morgan quickly countered: "The Daily Mirror does not accept
that the MoD has proved these photographs are faked.
"Nor will we accept that they are not genuine images until incontrovertible
evidence is produced to the contrary."
Earlier the newspaper issued a statement saying Mr Hoon's initial comments about the truck "were obviously designed to divert attention from the much bigger and
more important issue" of the abuse it had exposed.
"The MoD has had eight days to try and discredit the pictures, and the very
serious incident of abuse they illustrate, and the best they can do is now
suggest there are 'indications' that this type of van may not have been in Iraq
at the time," it said.
But four soldiers had told the paper the van was used, it added.