"Absolutely, 200 percent, I reject it," Musharraf told the BBC in an interview from the United States.

The British broadcaster cited the policy paper written by an unnamed senior official in the British defence ministry as charging that Pakistan indirectly supported terrorism.

"Indirectly, Pakistan, through the ISI, has been supporting terrorism and extremism, whether in London on 7/7 (the July 7, 2005 bombings on London's transport network) or in Afghanistan or Iraq," the report reads.

The policy paper proposes using military links between British and Pakistani armed forces to persuade Musharraf to step down as leader of the country, accept free elections, withdraw the army from civilian life and dismantle Pakistan's intelligence service, the ISI.

Pakistan's military ruler responded angrily to the suggestions, saying: "I would like to tell this Ministry of Defence spokesman to say the Ministry of Defence maybe should be dismantled before the ISI is dismantled."

He said the ISI was a "disciplined force" which "won the Cold War for the world", adding: "We don't like anybody advising us to dismantle ISI, least of all the (British) Ministry of Defence."

The report was described as being written by a senior military official linked to Britain's foreign intelligence service MI6, and part of a fact-finding mission to Pakistan in June.

"I take exception seriously, and I would like to talk about it Prime Minister Tony Blair when I meet him..."

The two leaders are to meet after Musharraf arrives in London on Thursday, Blair's office said.

A spokeswoman for the British defence ministry said the paper "in no way represent the views of either the MoD or the government.

She said the author of the report "suspects that (it has) been released ... precisely in the hope that (it) would cause damage to our relations with Pakistan."

"Pakistan is a key ally in our efforts to combat international terrorism and her security forces have made considerable sacrifices in tackling al-Qaeda and the Taliban."