A former police officer has claimed he was prevented from arresting Fr James Chesney in 1972 by senior RUC officers.
Earlier this week, the North's Police Ombudsman found the RUC in 1972 engaged in a "collusive act" in how it dealt with high-level intelligence that the priest was one of the prime suspects for the IRA Claudy bombing which killed nine people and injured more than 30.
According to the BBC website, the former Special Branch detective said officers were within 15 minutes of undertaking an operation to search Fr Chesney's house but were told not to do so, because "the matter was under control".
"The decision not to pursue Mr Chesney was not taken at a low level, it was not made by those who were investigating this or were any way associated with it," the BBC reports.
"This was not a decision by the RUC in general, this was not a decision by the detective inspector who was leading the investigation and those who were working with him. This was a decision made above - way above - the investigating team."
In his report on the Claudy bombing, Police Ombudsman Al Hutchinson said the RUC, the British government and the Catholic Church were aware of Fr Chesney's alleged involvement, yet he was never arrested or questioned. Instead, at the apparent behest of Cardinal Conway the priest was transferred to a parish in Co Donegal. Fr Chesney died aged 46 in 1980.
Catholic Church records indicated that when questioned by his superiors Fr Chesney denied involvement in terrorist activity. But his denials were never tested by the police.
Mr Hutchinson said that his investigation found no evidence of criminal intent on the part of any Government minister or official or on the part of any official of the Catholic Church. He said the "collusive act" was initiated by the RUC.