He was arrested with eight other men after plotting to bomb the London Stock Exchange and build a terrorist training camp.
He was ordered to serve at least eight years in prison.
It was reported that Khan had planned to travel to Pakistan-controlled Kashmir and set up a terrorist group on a piece of land owned by his family.
Of the nine men arrested, Khan and two others were described by Judge Mr Justice Wilkie as “the more serious jihadists”.
The judge added that Khan shouldn’t be released until he and the others were considered to no longer be a threat to the public.
However, in 2013, Khan and three other men argued that they shouldn’t have received indeterminate sentences for public protection (IPPs) – special sentences intended to keep prisoners beyond their original minimum term.
The Court of Appeal eventually ruled that the indeterminate sentences originally given to Khan and the others should be replaced with fixed terms and extended licences.
The halfway point of the fixed terms, at which point the men were eligible to be released on license, matched the minimum they originally served before they could seek to leave prison.
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Khan was 22-years-old at the time of his arrest in 2010 and had been living in Stoke.
He was ordered to serve at least eight years of his 16-year sentence.
He was told he would be subject to extended licenses of five years beyond his sentence, which are intended to allow the authorities to recall someone to prison.