Mohammed Ahmed Mohamed, 27, who was subject to an order restricting his movements, entered a mosque in London on Friday wearing Western-style clothes but CCTV images showed him leaving disguised as a woman, with his face and body fully covered.
He is understood to have received training and fought overseas for the Somalia-based Shebab, the al Qaeda-linked militants who launched the attack on a Nairobi shopping mall in September in which at least 67 people were killed.
Home Secretary Theresa May, the interior minister, said that the suspect did not pose a "direct threat" to Britain.
"The reason he was put on a TPIM in the first place was to prevent his travel to support terrorism overseas," she said in a statement to parliament.
Mohamed is under a Terrorism Prevention and Investigation Measures (TPIM) notice, which was imposed primarily to prevent overseas travel.
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I am all for removing the burkha in UK and all over the world. I mean to day - at least let that lady's face be shown for gods sake. I know the burkha is sacred but when people start misusing it , then some thing must be done about it , else it wont remain sacred for long .
UK should ban burkha now.