31 August 2011 Last updated at 17:21 
A Whitehall official said the money should be available to load into cash machines and distributed to banks very quickly.
The cash was released following a decision by the United Nations sanctions committee in New York.
The official said the transfer should make it possible to pay many public sector workers over the Eid holiday.
Many of those dependent on government salaries have not been paid for many weeks.
The move comes on the eve of a major international conference on the future of Libya to be held in Paris on Thursday, chaired jointly by French President Nicolas Sarkozy and UK Prime Minister David Cameron.
The RAF is flying £950m of Libyan cash to Libya after a UN assets freeze targeting Col Gaddafi was lifted.
Notes, amounting to 1.8 billion Libyan dinars that were printed in the UK, will be handed to Libya's Central Bank.A Whitehall official said the money should be available to load into cash machines and distributed to banks very quickly.
The cash was released following a decision by the United Nations sanctions committee in New York.
The official said the transfer should make it possible to pay many public sector workers over the Eid holiday.
Many of those dependent on government salaries have not been paid for many weeks.
The move comes on the eve of a major international conference on the future of Libya to be held in Paris on Thursday, chaired jointly by French President Nicolas Sarkozy and UK Prime Minister David Cameron.
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