The 22 year-old victim, named locally as Paul McMonagle from the Galliagh area, died after his vehicle went out of control at high speed in the border village at around 1am. Another man who was in the car was taken to hospital.

The Garda Ombudsman is investigating the incident.

Mr McMonagle spoke to the 'Journal' earlier this week, claiming he feared for his life after receiving a death threat from dissident republicans who accused him of a sex attack.

He said he'd been targeted by the Real IRA following an indecent assault on a young woman pushing a pram in Galliagh in June.

Mr McMonagle, who is understood to have been shot in the ankle by the INLA in Derry some years ago, claimed: "I'm an innocent man but now I'm fearing for my life because I've been blamed in the wrong."

He said police had told him he was "under threat" from dissidents.
"I went to police voluntarily and even took part in an identity parade," he said. "I have received a death threat for nothing, I just want to clear my name," he added.

The main road through Muff remains closed between the Texaco garage and Liberty Bridge. Diversions are in place and drivers are advised to avoid the area.