DUBAI - Five British yachtsmen were set to land in Dubai late on Wednesday following their release from detention after Iran accepted they inadvertently strayed into the Islamic republic's territorial waters.

International media staked out a yacht marina in the debt-laden emirate, where their boat was expected to dock after being towed back across the Gulf.

The British Foreign Office confirmed the release of the men, who had been sailing from Bahrain to Dubai to take part in a race.

"The five Britons who had illegally entered with their vessel into the territorial waters of the Islamic Republic of Iran and who were arrested near Siri island have been freed hours ago," said a statement from Iran's elite Revolutionary Guards carried by the Fars news agency.

In London, the Foreign Office said "the Iranian ministry of foreign affairs have confirmed that the five yachtsmen have been released.

"We understand that they are being towed to international waters and will be met by a representative from the sailing company."

Noaman al-Hassan, Bahrain Maritime Sailing Association general secretary, told AFP in Manama the boat would be towed to the Dubai International Marine Club.

The Guards, whose naval forces patrol Gulf waters, said the men had been interrogated and, "after investigation, it became evident that their illegal entry was a mistake."

"So they were freed after taking the needed written commitments."

The five had been held since November 25.

On Tuesday, President Mahmoud Ahmadinejad's chief of staff Esfandiar Rahim Mashaie warned they would be dealt with "firmly" if found guilty of illegally entering Iranian waters with "ill intentions."

British Foreign Secretary David Miliband had pressed his Iranian counterpart, Manouchehr Mottaki, to release the five -- Oliver Smith, Oliver Young, Sam Usher, Luke Porter and sports journalist David Bloomer, who holds dual Irish-British nationality.

Miliband said they appeared to have "inadvertently" strayed into Iranian waters, adding that the incident had "nothing to do" with politics or the standoff over Tehran's nuclear programme.

The West suspects Iran of seeking to develop nuclear weapons, while Tehran insists its programme is purely for civilian purposes.

Despite Miliband's remarks, Tehran accused London of politicising the issue.

"This was not a political issue at all, but the British government ... tried to take advantage from this politically and exaggerated the issue," foreign ministry spokesman Ramin Mehmanparast told the Mehr news agency after the release.

David Young, father of 21-year-old Oliver, said he was "very relieved" at their release, adding: "We thought it would be over quickly. This is what we were hoping for."

Miliband said the information he had indicated the men had been treated "perfectly well" during their detention.

"Obviously this has been an ordeal for the young men and their families and I'm delighted it's over for them and that we can call the matter closed," he said.

Andrew Pindar, chairman of the Sail Bahrain team, which owns the yacht, said he was "thrilled" with the news of the releases.

"The team has sent out a boat to meet the crew, where our team director Nick Crabtree is looking forward to accompanying them safely to shore," he said.

The yacht, "The Kingdom of Bahrain," was stopped on November 25. Pindar said the yacht might have entered Iranian waters due to a damaged propeller.

It was believed to have been intercepted near the Iranian-controlled island of Abu Musa, whose ownership is disputed by Iran and the United Arab Emirates, a Bahraini interior ministry source told AFP.

The five's seizure was reminiscent of the detention by Iran of 15 British Royal Navy personnel in the Gulf in 2007.

In that incident, eight sailors and seven marines were captured on March 23. Britain insisted they were in Iraqi territorial waters, while Tehran said they were in Iranian waters.

During the 13 days they were held, the 14 men and one woman were not mistreated but they were paraded on Iranian television, sparking anger from Britain and other Western governments.