Home Secretary David Blunkett confirmed to the House of Commons that Jon Venables and Robert Thompson would be allowed to go free on a "life licence".

Both the boys were 10-years-old when they led James Bulger away from a shopping centre in Bootle, Merseyside, tortured and murdered him.

The toddler's mother, Denise Fergus - who has remarried after separating from the child's father, Ralph - reacted angrily to the decision and said the killers could never escape vengeance.

The Parole Board ruled the 18-year-olds were no longer a danger and should be freed as soon as possible.

But the terms of their licence means they will be supervised for the rest of their lives and could be rearrested at any time if thought to be a risk to the public.

Venables and Thompson are also forbidden from contacting each other or any members of the Bulger family, and are not allowed to enter Merseyside without permission.

Public funds will be used for their further education and to protect their identities, but National Probation Service Director Eithne Wallis told the BBC the pair would "never be completely free".

In a statement read out by a friend, Mrs Fergus said the government and the Parole Board had been deceived by two devious killers.

"The murderers have walked away with a life of luxury, a bought home, a bank account and 24-hour protection," she said.

But Venables' lawyer, John Dickinson, said his client had expressed remorse and was ready to be released.

"I think he would give a great deal to put the clock back, but unfortunately of course, he can't," he said.

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