Airline 'settles with MH17 victims'

Malaysia Airlines has reportedly come to a damages agreement with most of the families of the victims of the MH17 crash.

Malaysia Airlines has struck a deal to settle damages claims for most victims of its MH17 flight. (AAP)

Malaysia Airlines has struck a deal to settle damages claims for most victims of its MH17 flight that was shot down over eastern Ukraine two years ago, Dutch national broadcaster NOS has reported.

NOS cited Veeru Mewa, a lawyer representing Dutch victims.

Under the Montreal Convention, airlines must pay damages of up to about 130,000 ($A189,366) to victims' families, regardless of the circumstances of a crash.

MH17 was shot down over territory held by pro-Russia separatists, killing all 298 passengers and crew.

There were 27 Australians on board though most of the passengers were Dutch.