Neither the government, nor the lawyer representing the plaintiffs, will confirm or deny that a deal has been reached with the former residents of the Nova Scotia Home for Colored Children.
However, some news agencies in Halifax are reporting a deal has been reached in the class-action lawsuit.
About 150 former residents of the orphanage allege they were sexually, physically and psychologically abused by staff over a 50-year period, until the 1980s.
In December, Judge Arthur LeBlanc granted permission for a class-action lawsuit against the province to proceed.
A representative from Premier Stephen McNeil’s office told CBC News that "the government is still in discussions and is hopeful that a settlement can be reached."
However, the premier’s office would not confirm whether those discussions are close to conclusion or when an announcement would be made.
Ray Wagner, the lawyer representing the plaintiffs in the case, said there is “no comment” about a potential settlement.
Both The Chronicle Herald and CTV say the deal, expected to be worth millions of dollars, has been reached and will be made public next week.
The Herald says the premier will make the announcement on Tuesday.
In November, McNeil announced his government would try to settle the suit — something his New Democratic Party predecessor fought in the courts before being defeated in October's provincial election.
The allegations in the class-action have not been tested in court and previously lawyers for the government have argued that some of them are based on speculation or hearsay.