Iran to release local British embassy worker: lawyer

TEHRAN (Reuters) - Iran will release Sunday a local British embassy employee held at Tehran's Evin prison for three weeks on charges of inciting unrest following the country's disputed presidential election, his lawyer said.

"Hossein Rassam will be released today. I am at the prison with his wife to do the paper work for his release," Abdolsamad Khoramshahi told Reuters by telephone.

Rassam, chief analyst at the British embassy in Tehran, will be released on bail of almost 100,000 dollars, the lawyer said.

Hardline Iranian media said Rassam played a key role in post-election unrest last month and his arrest shed new light on Britain's "subversive activities."

Iran announced in late June the detentions of nine Iranian embassy staff and accused them of involvement in opposition protests. Eight have since been released.

Britain has denied Iranian accusations that embassy staff were involved in instigating mass demonstrations over the June 12 election. Opposition candidate Mirhossein Mousavi says the vote was rigged in favor of Iranian President Mahmoud Ahmadinejad who rejects the charge.

(Reporting by Parisa Hafezi; Editing by Louise Ireland)