Volkswagen
Volkswagen is set to agree a nearly $15bn settlements deal over the emissions scandalGetty Images

The cost of Volkswagen AG's settlement for car owners affected by the emissions cheating scandal will hit $14.7bn (£11.4bn; 13.7bn euros), with the settlement set to be filed in a court in Washington on Tuesday 28 June.

The deal sets aside as much as $10bn (£7.56bn; 9.1bn euros) to repair or buy back around 475,000 polluting VW vehicles and to compensate each owner with between $5,100 (£3,800; 4,540 euros) and $10,000, (£7,540; 9,000 euros) a source said, according to the Associated Press.

There will also be $2.7bn (£2.25bn; 2.45bn euros) paid out for environmental mitigation and another $2bn ( £1.51bn ;1.82bn euros) for research on zero-emissions technology.

The compensation will be the biggest auto scandal settlement in US history and will require the judge's approval, and car owners can decline the offer and pursue private lawsuits.

In addition, VW still needs to agree a deal on whether it will buy back 85,000 larger 3.0 liter Porsche, Audi and VW cars and SUVs that emitted up to nine times legally allowable pollution.

VW will face other fines and penalties as well as criminal charges over the scandal which broke in September when it was revealed that it had fitted many of its cars with software to fool emissions tests.

It was found the cars emitted more than 40 times the legal limit of nitrogen oxide, which can cause respiratory problems in humans. Spokespeople for the US Environmental Protection Agency and Volkswagen declined to comment.