Speaking at Prime Minister’s Questions (PMQs), Sir Keir said the act was “unfit” because it was not supported by victims or political parties.
He referred to the Northern Ireland High Court ruling that part of the act was incompatible with human rights’ legislation and the Windsor Framework.
“We will put in place a better framework, we’re working on a draft remedial order and replacement legislation and we will look at every conceivable way to prevent these types of cases claiming damages and it’s important I say that on the record,” he said.
If Mr Adams was successful with a compensation bid, it could result in a six-figure payout.
This would cover both his unlawful detention and a prosecution for attempted escapes, for which he was sentenced to four-and-a-half years imprisonment.
Speaking after Sir Keir’s comments at PMQs, his official spokesman said he could not guarantee that compensation payments to Mr Adams or other former Troubles internees would be prevented.
“Clearly the government’s intention is to prevent compensation from being paid,” he said.
“We are going to look at every option but I can’t get ahead of that process.
“The prime minister wouldn’t make the commitment on the floor of the House if he didn’t think we could address this issue.
“It is a complex area and we have been left with a real mess when it comes to the Northern Ireland Legacy Act which was completely unfit for purpose”.