DHAKA, April 25 (Reuters) - Bangladesh's army-backed interim government withdrew on Wednesday a ban on former prime minister Sheikh Hasina from returning to the country, an official statement said.

The administration had stopped Hasina from flying home from a holiday in the United States, saying her return could trigger violence in the country.

"The temporary alert issued by the government has been lifted," the government statement said, referring to the ban on Hasina who was not allowed to board a British Airways flight from London on Sunday.

The government also said there were no plans to send Hasina's rival and immediate former prime minister Begum Khaleda Zia into exile.

The government denied media reports that Khaleda was under virtual confinement at her home in Dhaka, adding there was no restriction on her movements.

"It is clear there is no pressure on Khaleda Zia to go abroad, neither any restriction on her movement," the government said.

Khaleda's close associates said earlier that she had pulled out of a reported deal with the interim administration to go into political exile with most of her family.

Bitter rivals Hasina and Khaleda have been targetted by the interim authority as part of a campaign to clean up politics and prepare for a free and fair election.

A crackdown on corruption has also netted more than 160 senior politicians, including Khaleda's eldest son and political heir-apparent, Tareque Rahman.

He is senior joint secretary-general of Khaleda's Bangladesh Nationalist Party (BNP) and has been detained on extortion charges.

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