An independent inquiry is to be launched into the death of a Thornton Heath private detective brutally killed with an axe more than 26 years ago. 

Home secretary Theresa May is expected to announce later this month a judge-led review into the murder of Daniel Morgan, who was found with an axe lodged in his head in pub car park in Sydenham on March 10, 1987.

No one has ever been convicted of the crime, despite five criminal investigations and 37-year-old Mr Morgan's family's relentless campaign for justice. 

The case against three men charged with the brutal slaying collapsed in March 2011 before it reached court. 

At the time, Tim Godwin, then acting commissioner of the Metropolitan Police, apologised and admitted police corruption had thwarted the investigation.

Daniel's brother, Alastair, 63, said last year he had "completely lost faith in the police" and called for a judicial inquiry so the family could see material accumulated by the Met. 

The independent review is likely to look at that material and explore how alleged corruption hampered the investigation into Daniel's murder.

A Home Office spokesman said: "Discussions are continuing with the family and we hope to make an announcement shortly."

Daniel, who was born in Wales, ran Southern Investigations with his partner Jonathan Rees. 

Last year the Leveson Inquiry heard evidence from former Crimewatch presenter Jacqui Hames, who suggested the now-defunct News of the World placed her under surveillance because of the newspaper's links to suspects in the murder case.

She alleged Daniel Morgan's firm Southern Investigations, whose members included suspects in the killing, had "close links" to senior News of the World news editor Alex Marunchak.

The paper is also alleged to have put under surveillance Detective Chief Superintendent Dave Cook, who led investigations into Mr Morgan's death.