Conversations between a Labour MP and a constituent of his in prison were bugged, the Government confirmed today.
But Home Secretary Jacqui Smith said an inquiry had concluded that the correct procedures had been followed.
She said the inquiry by surveillance commissioner, Sir Christopher Rose, had found the MP for Tooting, Sadiq Khan, was not the "target" for the bugging.
Ms Smith agreed with Sir Christopher that there was "scope for confusion" on the present surveillance and interception rules.
In a Commons statement, she announced a review of the codes of practice to clarify that conversations between MPs and constituents should be considered "confidential".
The bugging row centred on two conversations between Mr Khan and Babar Ahmad at Woodhill prison in 2005 and 2006.
Ms Smith said Sir Christopher had concluded that the Wilson doctrine governing the interception of communications involving MPs did not apply in this case, which involved surveillance.
Mr Khan first visited Ahmad before becoming an MP and was still listed as a "friend" on subsequent visits after being elected.
"These two visits which occurred after he had become an MP were monitored by surveillance.
"It is absolutely clear from Sir Christopher's report that Mr Khan was not the target of this surveillance."
Sir Christopher had found that warrants for surveillance of visits to Ahmad were correctly authorised and the correct procedures followed.Reuse content