"He is alive, he is breathing," Kelly said, criticizing the Sky report.
"I hope they would publish an apology. I can't believe they would publish a report like that without putting it through the basic fact check."
Kelly refused to say exactly when he had last spoken to al-Megrahi or how he knew he was alive.
Sky News said unidentified sources had told it that the bomber had reportedly died, but coverage of al-Megrahi then disappeared from the program.
Sky did not immediately return a call seeking comment.
Al-Megrahi, who has the advanced stages of prostate cancer, is the only man convicted in the 1988 bombing of the Pan Am flight over Scotland that killed 270 people. In August he was freed from a Scottish prison on compassionate leave and returned to Libya.
Doctors gave him only three months to live when he was released.
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