A $4 billion (£3.1 billion) settlement has been announced for claims from more than two thousand people seeking compensation over last year's deadly wildfires on Maui, Hawaii's governor has said.

Josh Green's office confirmed a deal in principle had been proposed to resolve around 450 legal cases.

The August 2023 wildfires were the deadliest in modern US history, killing more than 100 people and destroying the historic town of Lahaina.

A term sheet, seen by the BBC, said a $4.037 billion agreement had been proposed which "must fully resolve all Maui fires claims".

The settlement, which Mr Green said was reached after four months of negotiation, will be paid by the seven defendants named in lawsuits lodged in the wake of the fires.

These are the State of Hawaii, County of Maui, Hawaiian Electric, Kamehameha Schools, West Maui Land Co, Hawaiian Telcom and Spectrum/Charter Communications.

Hawaiian Electric has confirmed it will contribute nearly $2 billion, a little under half of the total settlement deal.

The hundreds of legal cases had been launched by individuals, businesses, and insurance companies in state and federal courts, Mr Green said. Approximately 2,200 affected parties had filed lawsuits, he added.

His statement made clear it is currently still an agreement in principle and requires final court and legislative approval.

"The agreement is conditional on the resolution of the insurance companies’ claims that have already been paid for property loss and other damages, with no additional payments from the defendants," it added.

Mr Green said the deal "will help our people heal", adding it was his priority to "avoid protracted and painful lawsuits" to allow the recovery process to begin as soon as possible.

"Settling a matter like this within a year is unprecedented, and it will be good that our people don’t have to wait to rebuild their lives as long as others have in many places that have suffered similar tragedies."

Once a final settlement is agreed it must also be approved by Hawaii's state legislature, Mr Green said. Payments are expected to begin by mid-2025, he added.