A Kent bus driver held in a Spanish prison after he was "set up" over a £4million cocaine and cannabis haul has been denied bail.

Dad-of-seven Michael Penney, 40, was driving a coach used to ferry bands on tour around Europe when police pulled over the bus just hours into his journey.

Police who found 10 kilos of cocaine and 750 kilos of cannabis resin hidden under bunk beds and inside cabinets on the luxury bus.

Mr Penney - whose family claim has no convictions - was arrested alongside his British co-driver, 59.

But ten weeks on the desperate family of Mr Penney said the pair are still in prison - and could be there for two years while police investigate.

It has been reported a European Arrest Warrant has been issued for the British owner of the bus company.

Michael's wife, Melissa Penney, 34, from Margate, has launched a fundraising campaign in a bid to fund a lawyer to get her husband home.

She said lawyers submitted an application for bail three weeks ago, but she has now been informed it has been rejected.

She said: "He would never get involved in drugs. He hates anything to do with that kind of thing and he has no convictions at all.

"We are going out of our mind with worry.

"He's keeping his head down and getting on with it as best as he can, but he's calling me in tears.

"His children miss him and I miss him.

"He has been set up. He would never get involved in anything like this.

"There are two innocent men stuck in Spain and nobody will listen to us."

Professional bus driver Mr Penney was employed by a British company to fly out to Spain to pick up the coach in January, his family claim.

"He has been set up. He would never get involved in anything like this" - Melissa Penney

In January the bus was being used by a group of golfers competing at a nearby competition before the pair were flown over to pick it up, his wife said.

Mr Penney's family claim the company owner went over with them but then flew home before they set off for the drive back on January 22.

They bus was stopped at around 2.30am at tolls on the AP7 motorway near the town of Sagunto.

Local paper Las Provincias said investigators suspect the vehicle was being used as part of an international operation to smuggle drugs into Britain.

Photos emerged of huge wrapped packets of drugs and local government officials congratulated law enforcement officers on their work.

A judge at Sagunto's Court of Instruction issued a European Arrest Warrant for the director of the transport firm registered as owning the tour bus, it was reported.

Mrs Penney said she didn't hear anything from her husband until six days later, after he appeared in court for drug offences.

He was transferred to a remand prison, Centro Penitenciario de Picassent, Valencia, where she claims he remains without charge.

"The kids are really upset," said Mrs Penney, a full-time mum.

"They are putting on a brave face and saying 'we'll go to school and work hard for dad' but it's just terrible.

"We've been told it could take two years to fight the case."

She has set up a funding page in a bid to hire him a lawyer .

A Foreign Office spokeswoman said: "We are providing assistance to two British men arrested in Valencia in January.”

The Spanish police did not respond to numerous requests for comment. Local British police would not comment on the reported European Arrest Warrant.