Piers Morgan was sacked as the Daily Mirror editor last night as the paper "unreservedly" apologised for publishing faked pictures of British soldiers abusing Iraqis.

Mr Morgan's departure came hours after the Queen's Lancashire Regiment (QLR) at the centre of the claims demanded he say sorry.

A Royal Military Police inquiry had concluded the photographs were "categ- orically" not taken in Iraq.

And Colonel David Black, a former QLR commanding officer, from North Yorkshire, said: "It's time that the ego of one editor is measured against the life of the soldier."

Mr Morgan had earlier dismissed calls for him to resign, saying: "All I want to say is we published the truth.

"We have revealed a can of worms. If the Government chooses to ignore that, it is entirely a matter for them."

However, the Mirror last night said in a statement it had been the victim of a "calculated and malicious hoax".

"The Daily Mirror therefore apologises unreservedly for publishing the pictures and deeply regrets the reputational damage done to the QLR and the Army in Iraq," it said.

"The paper will continue to cooperate fully with the investigation.

"The Board of Trinity Mirror has decided that it would be inappropriate for Piers Morgan to continue in his role as Editor of the Daily Mirror and he will therefore be stepping down with immediate effect."

On page one of today's Mirror, under the headline "Sorry, we were hoaxed", the paper states: "We also say sorry to the Queen's Lancashire Regiment and our Army in Iraq for publishing these pictures."

Col Black, spoke last night of "quiet satisfaction" at the departure of Mr Morgan.

Speaking from outside the regiment's headquarters, in Preston, he said: "There is the wider question, of course, and that is the damage that has been caused out on the streets in Iraq and across the Arab world in general by the publication of these photographs. The damage there I believe will take a long, long time to repair if not being irreparable."

Col Black said the regiment, which was stationed at Catterick Garrison, North Yorkshire, before its current posting in Cyprus "won't feel triumphant about this in any way. They will feel vindicated and relieved and we can now see an end to this business".