Ali Dizaei was the subject of a corruption inquiry

Ch Supt Barry Norman was compensated for "injury to his feelings" after heading up the corruption probe.

The BPA said the payment was "a reward for racism" and threatened to suspend ties with the Metropolitan Police.

The Met has asked the BPA to withdraw the statement and to clarify its position.

After Operation Helios - the investigation into Mr Dizaei - Mr Norman became Islington borough commander in north London before being appointed head of the Met's violent crime taskforce.

'Constructive' discussions

The BPA will make a formal complaint to the Independent Police Complaints Commission against those involved in agreeing to Mr Norman's compensation.

"It will also not rule out disengaging from the Metropolitan Police," the association said in a statement.

It will be instructing its lawyers to explore the possibility of revoking the compensation through the administrative court.

In a letter to the BPA, the Met's director of human resources Martin Tiplady expressed his surprise at the association's move and called for "constructive" discussions.

"You have misunderstood the Barry Norman report and acted, in my view, prematurely and without attempt to establish the facts," he wrote.

"Your course of action here, and the tone of your statement, is unnecessarily confrontational and endangers our good working relationship."