Three men have admitted using the internet to urge Muslims to wage holy war on non-believers, police said, in what is believed to the first prosecution of its kind in Britain.

Tariq Al-Daour, Younes Tsouli and Waseem Mughal had close links with Al-Qaeda in Iraq and thought there was a 'global conspiracy' to wipe out Islam, London's Woolwich Crown Court was told.

UAE-born Al-Daour, 21, admitted a charge of 'inciting another person to commit an act of terrorism wholly or partly outside the UK which would, if committed in England and Wales, constitute murder'.

Moroccan-born Tsouli, 23, and British-born Mughal, 24, admitted the same charge on Monday.

The guilty pleas came two months into their trial.

Al-Daour and Tsouli, who lived in west London, and Mughal, from Kent, in southeast England, also pleaded guilty to conspiracy to defraud banks, credit card and charge card companies.

The trial was told the computer experts spent at least 12 months trying to encourage people to follow the extreme ideology of Osama bin Laden using email and radical websites.

Films of hostages and beheadings were found among their possessions, including footage of British contractor Ken Bigley, who was killed in Iraq in 2004; and US journalist Daniel Pearl, killed in Pakistan in 2002.

CDs containing instructions for making explosives and poisons were also found, with other documents giving advice on how to use a rocket-propelled grenade and how to make booby traps and a suicide vest.

Police also discovered online conversations in which Al-Dour talked of sponsoring terrorist attacks, becoming 'the new Osama' and justifying suicide bombings.