AN ALLEGED terrorist plot to carry out an Iraqi-style kidnapping of a British Muslim soldier was thwarted today by anti-terror police.

Eight men were arrested in a major operation involving early morning raids at 12 addresses across Birmingham.

Security sources said the alleged plot was to carry out a "close quarters" style abduction of a Muslim soldier, which could have mirrored the kidnappings of Britons Ken Bigley and Margaret Hassan by insurgents in Iraq.

The victim would have been filmed, made to plead for his life and ultimately executed, sources alleged.

They said a target for the alleged plot had been identified.

He was a young Muslim soldier in the British army who had served in Afghanistan.

West Midlands Police, who led today's raids, refused to confirm claims the target had been identified and placed under protective custody.

The alleged plot was said to have been in the later stages of planning. Such a tactic has not been employed by terrorists in the UK but is a constant threat for foreigners in Iraq.

Home Secretary John Reid declined to go into details about raids which took place at 4am.

He said: "The current operation and investigation is ongoing."

Patrick Mercer, the Conservative homeland security spokesman, said of the alleged plot: "If this proves to be accurate this is a disturbing departure."

Recent al Qaida-style terrorist bombings have been designed to cause mass casualties, such as on public transportation systems.

Today's raid came after a surveillance operation that has been ongoing for some time. MI5 has been working closely with police.

The eight men were arrested on suspicion of the "commission, preparation or instigation of acts of terrorism" under the Terrorism Act 2000.

West Midlands Police said 12 addresses were being searched.

Mr Bigley, from Liverpool, was taken hostage in Iraq by the Tawhid and Jihad militant group in September 2004 and murdered just over three weeks later, with his death captured on video.

The group had demanded the release of Iraqi women detained by the US-led command in Iraq.

Mrs Hassan, who had British, Iraqi and Irish nationality, was kidnapped in October 2004 and shot a month later.

The Home Office said today's arrests were part a "nationwide" operation.