An agreement has been reached that may free the Bulgarian nurses sentenced to death in Libya for infecting 426 Libyan children with AIDS, news reaching Tunis from Tripoli said on Tuesday.

The agreement, which was signed between the Gaddafi Foundation charity and the families of the infected children, would finally resolve the case, the foundation said in a statement.

"This accord satisfies all the parties and puts an end to the crisis," the statement said, adding that details would be announced later.

The Gaddafi Foundation, which is run by a son of Libyan leader Muammar Gaddafi, has been working to find a solution to nurse's future, which has concerned Bulgaria and its allies the European Union and United States.

The five Bulgarian nurses and a Palestinian doctor were sentenced to death by Libya's Supreme Court in December 2005 after being convicted of infecting 426 Libyan children with the deadly virus while they worked at a hospital in the city of Benghazi in the 1990s.

Bulgaria's EU allies and Washington have been trying to secure the release of the nurses and the case has blocked Libya's efforts to deepen its links with the west.

Reports said behind the scenes talks have been taking place between the European Union and the families of the children.

The families have asked for about US$13.3 million for each child, a sum of money the EU refused to pay.

(Xinhua News Agency July 11, 2007)