Lawyers representing victims of such attacks, where semtex explosives supplied by Gaddafi were used, said that Blair had "questions to answer" as to why British victims were not included in a 2008 deal which saw the Libyan government pay out USD$1.5 billion to US victims of terrorism.
The deal provided Gaddafi's government figures immunity from terrorism-related charges, which in effect made British attempts to sue Libya in US courts invalid.
It's understood Mr Blair is being called to give evidence to the House of Commons Northern Ireland committee after members received a copy of an email sent to Mr Blair's office by the then ambassador to Tripoli, a few days before Blair met Gaddafi in Libya in 2008.
The lawyers representing British victims last month told the committee that such correspondence made it "very clear that Tony Blair is working with President [George] Bush and Gaddafi to bring out what is known as the Libya claims settlement agreement, which deprived all the British citizens of compensation."
"Blair Needs to Shed Light on his Involvement"
The committee's chairman, Laurence Robertson has asked Blair to submit a written response to the inquiry by October 23, while noting that the former PM could be called in to give evidence in person at a later date.
#TonyBlair called to give evidence on why US victims of terrorism were compensated when he cut a deal with Ghaddafi but UK victims were not.
— zak brophy (@zakbrophy) October 9, 2015
Robertson wrote a letter to Blair saying: "There is a real sense amongst the victims that an opportunity to include them in the agreement reached between the US and Libya was missed in 2008. The committee is keen to shed some light on this and in so doing maybe provide some kind of closure for the victims.
"As you [Blair] are no doubt aware, there has been a lot of concern voiced as to the nature of any involvement you may have had in negotiations between Libya and the US in the run-up to the signing of the US-Libya claims settlement agreement, which precluded the provision of compensation for the UK victims."
Concern Over Business Interests
While Blair was not in office in 2008, he is accused of not pursuing the inclusion of British victims in the compensation deal during his time as PM as it may have inhibited his business interests.
McCue said that calling Blair to give evidence was a "great step forward" and hoped with it would uncover more of the former prime minister's involvement in brokering the deal.
"The United States, as well as Germany and France, all managed to secure their business interests without relinquishing responsibility and respect for their own citizen victims."
"Government departments ever since have been unable to explain why it is that the UK's victims of the IRA have been prevented from gaining compensation, as other countries have, from Libya," McCue said.
"The lives of the UK victims and their families seem to have been sacrificed for the benefit of half a billion pounds' worth of celebrated business deals that never fully transpired."
"Blair's answers may be the key to revealing finally how this failure of duty of care transpired during his government, and successive British governments."
