Citing two Pakistani officials, ABC News said National Security Adviser Tom Donilon made the threat after summoning Husain Haqqani to the White House.

He reportedly warned US consulates in Pakistan may be closed and President Asif Ali Zardari's upcoming visit to Washington could be cancelled if the US official, whom Lahore police say committed murder, was not freed.

ABC News said a senior US official confirmed the details, but Haqqani and the US embassy in Islamabad denied the report.

"While the US side has let its position be known to us, at no stage has any threat been made to me by any US official at any level and our dialogue continues," Haqqani told AFP.

"The US and Pakistan remain partners and we look forward to resolving the Raymond Davis case in accordance with international and Pakistani law and in the spirit of our countries' friendship."

Courtney Beale, spokeswoman for the US embassy in Islamabad, said: "The ABC report is not true. The description of the conversations in the report are simply inaccurate."