Volkswagen, Justice Dept nearing $3 billion agreement to resolve diesel allegations

Volkswagen AG and the U.S. Justice Department are nearing an agreement to resolve the government's civil and criminal investigations that would require the German automaker to pay more than $3 billion, sources briefed on the talks said Friday.

The agreement is not final and could still change or fall apart but a deal could be announced as early as next week. Volkswagen is also likely to face oversight by an outside monitor and agree to other significant reforms in connection with its diesel cheating scandal as part of a likely deferred prosecution agreement. VW has previously agreed to pay up to $17.5 billion to resolve claims by owners, federal and state regulators and dealers.

(Reporting by David Shepardson; Editing by Chris Reese)