Leeds Crown Court was told a Bradford man is known as a police informer.
Mohammed Nisar Khan, also known as Meggy, is alleged to have met Yassar Yaqub at a restaurant in Bradford just before Mr Yaqub was killed by a police marksman on 2 January last year.
Mohsin Amin, who is among three men on trial accused of conspiracy to possess firearms and ammunition with intent to endanger life, told the court there were fears that Meggy may try to "set up" or "frame" Mr Yaqub with the police.
Amin and his co-accused Rexhino Arapaj and David Butlin are appearing at Leeds Crown Court nearly two years after the operation on a motorway slip road during which Mr Yaqub was shot.
The trial continues.
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