The 23-year-old spy sparked a nationwide manhunt after fleeing Wandsworth Prison in September 2023 by clinging to the underside of a food lorry.
After three days on the run, he was eventually spotted riding a stolen mountain bike along a canal towpath in Northolt, west London – about 14 miles away from the prison.
In November 2024, Khalife was found guilty of his prison escape as well as spying for Iran.
Earlier this month, Khalife was moved from scandal-hit Wandsworth Prison in south London to HMP Frankland, dubbed ‘Monster Mansion’ in County Durham.
On his arrival at his new jail, he is said to have been met with cheers and back-slapping from fellow inmates.
A source told the Mirror: ‘Khalife was brought and got a hell of a reception when he arrived on his wing. They were patting him on the back and treated him like a legend. It was a hero’s welcome. The other prisoners were cheering and clapping. They love him because of how he escaped.
‘It made the prison authorities look stupid. So all these killers and armed robbers were treating him like a conquering hero. They ignored the fact he is a convicted spy and what he was doing for Iran and against British soldiers.’
Former soldier Daniel Khalife spy sparked a nationwide manhunt after fleeing Wandsworth Prison in September 2023 by clinging to the underside of a food lorry
Earlier this month, Khalife was moved from scandal-hit Wandsworth Prison in south London to HMP Frankland, dubbed ‘Monster Mansion’ in County Durham (pictured from above)
In November 2024, Khalife was found guilty of his prison escape as well as spying for Iran
They added: ‘Some of the other inmates have been helping him out. It’s a massive contrast to how a lot of people are treated when they arrive at Frankland.
‘But he is not popular with a Muslim gang on his wing, perhaps because he was in the Army.’
The 23-year-old was jailed for 14 years and three months at Woolwich Crown Court in London last month and ordered to pay £10,000 towards prosecution costs.
Khalife was in the British Army when he ‘exposed military personnel to serious harm’ by collecting sensitive information and passing it to agents of Iran.
He was paid in cash and told handlers he would stay in the military for 25-plus years for them.
In September 2023, Khalife escaped from category B prison HMP Wandsworth in South West London by clinging to the underside of a food delivery truck.
He was caught on a canal towpath by a plainclothes detective days later after a major lga pick search.
Prosecutors in his trial said Khalife played ‘a cynical game’, claiming he wanted a career as a double agent to help the British intelligence services, when in fact he gathered ‘a very large body of restricted and classified material’.
Khalife was sentenced to six years for committing an act prejudicial to the safety or interests of the state, and another six years – consisting of five years in prison and one on licence – for eliciting information about members of the armed forces. The judge also passed a sentence of two years and three months for the jail break.
Last November, jurors at Woolwich Crown Court found that Khalife had breached the Official Secrets Act and the Terrorism Act. He was cleared of carrying out a bomb hoax and had already admitted during his trial to escaping from Wandsworth prison.
Justice sources said he had been moved to Frankland as it is ultra-secure and inmates are categorised based on their risk to the public, staff and other prisoners.
MailOnlnine has approached the Prison Service and the Home Office.