A judge has ruled Volkswagen (VW) must let customers who purchased any of the 600,000 vehicles that had been rigged to manipulate emissions data in the US the option to either have the German manufacturer buy back their car or fix it.

A California court has also rule that VW must also include "substantial compensation" to the customers as part of the deal between the company, the US government and lawyers.

Last year's emissions scandal at Volkswagen's US operations revealed the car company was found to have manipulated data to make it appear that some of its vehicles were more environmentally friendly than they actually were. The German car manufacturer reported a €3.48bn (£2.5bn, $3.8bn) loss as a result of the emission scandal as it was found around 11 million cars had been impacted worldwide.

Senior US District Judge Charles Breyer said VW will also be required to fund corrective efforts over the excess pollution to promote green automotive technology as part of the deal. He gave both VW and regulators until 21 April to reach an agreement on how to resolve the issue of the 600,000 faulty diesel cars in the US.