There’s a report Ottawa is ready to sign off on a multi-million dollar settlement for the “two Michaels” to compensate for the nearly three years they were held in Chinese prisons.

Federal lawyers are in talks with Michael Spavor and Michael Kovrig and are hoping to conclude the financial settlement early in the new year.

However, the government has expressed concern about a potential lawsuit from Spavor that alleges the men were arrested and imprisoned in China after he “unwittingly” provided information to Kovrig that was shared with Canadian and other Western spy services.

The Canadian government has offered around $3-million to each man, but Spavor’s lawyer says his client is seeking $10.5-million, alleging gross negligence on how Ottawa handled intelligence operations in China.