Indian doctor Mohammed Haneef [Images], who was wrongly accused of involvement in the failed UK terror plot, has sought "more powers" for the judicial inquiry into his bungled case and expressed willingness to give evidence.

In an interview to The Australian published on Monday, Haneef said the inquiry should be given powers to ensure all documents are released, and witnesses, including Australian Federal Police Chief Mick Keelty and former immigration
minister Kevin Andrews -- as well as investigators, prosecutors and bureaucrats -- are compelled to give evidence and face cross-examination.

The Australian government had ordered the inquiry by a former Supreme Court judge John Clarke QC into Haneef's case last week, saying there was a need to restore the "public confidence" in the country's counter-terrorism measures.

"I am very pleased to hear that there is going to be an inquiry," Haneef was quoted as saying by the newspaper on Monday.

"Hopefully it will take the right course. I think there should be powers to compel people to give evidence, otherwise the truth won't be revealed," he added.

Haneef's lawyers were discussing with Federal Attorney-General Robert McLelland to widen the inquiry that lacks power to subpoena witnesses or compel testimony, the report said.

However, McLelland's office on Sunday appeared to dampen Haneef's hopes that he will give Clarke greater powers.

"The government regards the Clarke inquiry as the most appropriate and effective way to get the facts while protecting national security information," an office spokesman said.

Despite concerns by his lawyers that the inquiry could repeat last year's exhaustive interrogation of the then Gold Coast Hospital doctor, while he was in custody, Haneef said he would work with Clarke's investigation.

"I am going to fully co-operate with the inquiry. I am ready to give evidence," he said.

Clarke has expressed his willingness to go to India to interview Haneef if the doctor was unable to travel to Australia.

Haneef -- who is looking for a new job, probably outside India or Australia -- will seek compensation over his treatment, which followed foiled terrorist attacks in London [Images] and Glasgow in 2007.

"I will leave it to my lawyers to advise me as to what are the options and what I am entitled to," he was quoted as saying in the report.

He further said, "The whole of my career has been ruined. My family has been put into trouble and made to suffer and my reputation has been dragged through the mud."

Meanwhile, Haneef has hired a leading law firm Maurice Blackburn to represent him.

Maurice Blackburn partner Rod Hodgson said he would be seeking talks with McLelland to widen the inquiry's powers.

"The powers vested in the head of the inquiry are not strong enough," he said.

Hodgson also emphasised that Haneef had a strong claim for compensation.

"He has had his reputation trashed, his career stalled, his liberty taken away, his life in Australia interrupted, his earnings reduced and his life turned upside down," he said, adding "Those are all wrongs absolutely deserving of compensation."

Haneef was arrested on July 2, 2007, from Brisbane airport as he was to board a flight to India.

He was kept in custody for 12 days before being charged with providing support to a terrorist group.

The charge was based on Haneef giving his cell phone SIM card to his cousin Sabeel Ahmed, an accused in the failed bomb attacks in the UK.

However, the charge was dropped two weeks later after it was found that there was no reasonable prospect of securing a conviction and that the claim that the SIM card was found in the Glasgow attack vehicle was wrong.

Then immigration minister Andrews still went on to cancel Haneef's visa, saying he was not of "good character", a decision later overturned by the court.

The new government that came to power in November said Haneef is welcome to return to Australia to work.