Li has agreed to pay US$8 million (S$11.4 million) to settle the long-running probe, which came about during the attempted takeover of Dow Jones by News Corp last year, the Financial Times reported quoting unnamed sources.

As part of the deal with the US Securities and Exchange Commission, Li, who is the chairman and chief executive of Bank of East Asia here, would neither admit nor deny wrongdoing, the report added, quoting sources familiar with the talks.

However, the report added that negotiations were still ongoing and could change before any deal is finalised.

A Bank of East Asia spokeswoman in Hong Kong said they had no comment about the report. Li has previously denied the claims.

Investigators are trying to establish if Li gave information to a Hong Kong couple accused of buying a block of Dow Jones stock just before its share price rocketed on news that Rupert Murdoch's News Corp had launched a takeover bid for the company.

Li is a close friend of the father of one of the accused, the report said. The couple deny the charges.

The report said Li's proposed payment is tied to the couple's alleged profit from the deal. -- AFP