It is understood charges will be dropped against the last remaining suspect in the search for the people behind the Omagh bombing.

Seamus Daly had faced 29 murder charges over the explosion in August 1998.

It was the deadliest single atrocity of the North's Troubles.

Court proceedings are currently subject to reporting restrictions.

Daly, 45, from Jonesborough, is accused of murdering the 29 people killed in the 1998 Real IRA outrage and a series of other offences.

Michael Gallagher, whose son Aiden was killed in the bombing, said he was unhappy that information was circulating about the collapse of the case, yet he and other families had not been informed by the authorities.

"We have been failed once again by the police service, by the prosecution service, by the government and by the criminal justice system," he said.

Seven years ago, Daly was one of four men successfully sued for bombing the market town when he was found liable for the attack in a landmark civil case taken out by some of the bereaved families.

Nobody has ever been convicted of the murders in a criminal court.

Daly has always denied involvement in the bombing.

The dead came from the North, the Republic of Ireland, England and Spain. One of the victims was pregnant with twins.