PETALING JAYA (THE STAR/ASIA NEWS NETWORK) - Malaysia Airlines (MAS) has reached a settlement with an Australian family which lost four family members on board flight MH17 when it was shot down over Ukraine three years ago.

Anthony Maslin and Marite Norris from Perth lost three children, Mo, 12; Evie, 10; and Otis, eight, during the crash along with Marite's father, Nick Norris, who was travelling with the children.

They are the first Australian family to reach a settlement with MAS.

The settlement came after the Maslin family filed a lawsuit against the airline.

MAS confirmed that an "amicable and confidential settlement" has been reached with the Maslin family, resulting in the suit being withdrawn.

"MAS will not however disclose any further details on this suit or about the details of the settlement in respect to the privacy of the family," said the airline in a statement on Tuesday.

"Our thoughts and prayers remain with the families and friends affected," it said.

MH17 was shot down by a Russian-made BUK anti-aircraft missile over the volatile area of eastern Ukraine near the Russian border on July 17, 2014, killing all 298 passengers and crew on board, including 44 Malaysians and 38 Australian citizens or residents.