LONDON, Aug 31: Libya has agreed to a compensation deal with the relatives of those killed in the bombing of a French airliner over Niger in 1989, Tripoli’s London ambassador Mohammed al-Zuai told AFP here Sunday.

But in Paris, lawyers for the families said the deal had not yet been signed, and the French foreign ministry said it was unable to confirm an agreement.

The family representatives and Libya “arrived at a final accord satisfying both parties”, Zuai said, adding that the deal was finalized during a telephone conversation between French President Jacques Chirac and Libyan leader Moamer Qadhafi.

“During the telephone conversation between Chirac and Qadhafi, they agreed on this issue and announced that the accord was satisfactory to both parties,” Zuai added.

Families returned empty-handed from Tripoli last week, where they had flown on a French government aircraft hoping to strike a deal with Libya to pay additional compensation for the 1989 bombing of a UTA civilian airliner over Niger.

Family representatives returned to Tripoli on Saturday to resume compensation talks, the French foreign ministry said.

“The families have already left for France,” said Zuai, who was a member of the negotiating team which thrashed out the deal over the Lockerbie compensation. The details of the agreement will be announced tomorrow (Monday), he added.

But one of the lawyers representing the families told AFP: “We are very, very close to an agreement, but everything has not yet been settled. A fair and satisfactory agreement in principle has been reached.”

Another of the lawyers, Francoise Rudetzki, said: “Nothing has been signed. It is perhaps imminent... We were not face to face with the person who is qualified to sign.”

The French foreign ministry was also unable to confirm the reports of an agreement.

“The ministry is not confirming an agreement and refers to previous statements according to which negotiations are continuing in a constructive manner,” a ministry official told AFP. Sources close to the case said French authorities are awaiting the return of the families to France.—AFP