Mr Grayling attacked human rights laws as the hate cleric was released from a high security prison and returned home having won his latest challenge against deportation.

He was freed after the Special Immigration Appeals Commission (Siac) used human rights laws yesterday to block his removal to Jordan amid claims that evidence gained under torture could be used against him.

Mr Grayling told the Commons: “All of us believe the law should not operate in this way and this case underlines my view that there is a very real need for major changes to the way the European human rights framework operates."

Qatada, once branded Osama bin Laden's right-hand man in Europe, will face strict bail conditions and be watched round-the-clock in an operation reportedly costing £5 million a year.

But Mr Grayling said European human rights laws, introduced in Britain through the 1998 Human Rights Act, were not intended to help dangerous men like Qatada.

He added: "I do not believe it was ever the intention of those who created the human rights framework that we are currently subject to, that people who have an avowed intent to damage this country should be able to use human rights laws to prevent their deportation back to their country of origin."

David Cameron said he "shares the British people's frustration" at Qatada's presence in Britain.

"I am completely fed up with the fact that this man is still at large in our country. He has no right to be there, we believe he is a threat to our country.

"We have moved heaven and earth to try to comply with every single dot and comma of every single convention to get him out of our country.

"It is extremely frustrating and I share the British people's frustration with the situation we find ourselves in."

Conservative MP Jacob Rees-Mogg urged the Government to follow Henry VIII's ruling that it was high treason to appeal to a court outside his kingdom.

The North East Somerset MP said: "Has not the time come for this Parliament once more to legislate to prohibit appeals to foreign courts and to prohibit the judgments of foreign courts leading our judiciary?"

Terror suspect Qatada was released from Long Lartin prison today and returned to north London.

He was driven away from the maximum security prison HMP Long Lartin in Worcestershire in a black Volkswagen people carrier.

The heavily-bearded cleric, who was sitting in the rear of the vehicle, made no attempt to hide from waiting media cameras and appeared to be smiling.

He was met by protesters outside his home, the location of which cannot be identified.

Earlier Nick Clegg, the Deputy Prime Minister, said the Government is “absolutely determined” to deport Abu Qatada as a legal watchdog warned it could take “years” to remove him. He said the Government would appeal against the ruling.

“We’re determined to deport him,” he told ITV’s Daybreak. “We strongly disagree with the court ruling, we’re going to challenge it, we’re going to take it to appeal.

“We’re absolutely determined to see this man get on a plane and go back to Jordan.

“He doesn’t belong here, he shouldn’t be in this country, he’s a dangerous person. He wanted to inflict harm on our country and this coalition government is going to do everything we can to challenge this every step of the way to make sure he is deported to Jordan.”

However, David Anderson QC, the Independent Reviewer of Terrorism Legislation, indicated that it could take years before Qatada can be removed from Britain.

Mr Anderson said he believed the Jordanian government could resolve the impasse by amending the country’s “code of criminal procedure” to satisfy the Special Immigration Appeals Commission, which ordered Qatada’s release yesterday.

But he conceded that the deportation process may then need to start again, including allowing Qatada repeated appeals, before the cleric can be deported.

Mr Anderson told BBC Radio’s Today programme the key to resolving the dispute was with the Jordanian government.

“It's a very frustrating episode for all concerned but as far as I can see this is not the end of the road,” he said.

“What the judge said, what the court said in terms, was that a simple amendment to the Jordanian criminal code so as to remove an ambiguity that is in it at the moment ought to suffice to make deportation possible.

“It would then be possible to say without fear of contradiction that Abu Qatada, if placed on trial back in Jordan, would not be tried on the basis of evidence obtained by torture,” he said.

Such action could see Qatada deported in “months” or “a very few years”, he added.

Jordan’s acting information minister, Nayef al-Fayez, said the Jordanian government shared Britain’s “disappointment” at the ruling.

“From our tentative understanding, there will be an appeal from the British government and accordingly we will be coordinating closely with them to see what are the next steps to be taken,” he told the BBC.

The former Tory security minister, Baroness Neville-Jones, called for reforms to deportation law to allow ministers to decide who should be thrown out of the country.

“The system is now being made a monkey of,” she told Today.

Yesterday, Mr Justice Mitting ordered that Qatada should be released from a high-security prison and imposed bail conditions that only placed him under a 16-hour curfew.

It is the latest twist in a legal battle that has run for more than a decade and cost the taxpayer more than £1 million in legal fees and benefits.