Victoria's disgraced former deputy Speaker Don Nardella has agreed to repay $98,000 he claimed in parliamentary allowances to live by the seaside.
He has struck a deal to repay the money in instalments, Fairfax Media reports.
However, Mr Nardella maintains he broke no rules in claiming the allowance.
It's understood Mr Nardella will repay the money by taking a pay cut between now and the November 2018 election.
He will pay a further $16,000 as a lump sum by November 24 next year.
The deal comes after months of Mr Nardella refusing to pay back the money he claimed to live in the seaside town of Ocean Grove instead of his St Kilda apartment.
The second residence allowance was originally designed to help country MPs keep a second home in the city when parliament sits.
However, Mr Nardella, along with former Speaker Telmo Languiller, used a loophole in the system to claim the perk.
Mr Languiller quickly agreed to repay the almost $40,000 that he had claimed.
Premier Daniel Andrews announced earlier this week parliament would force Mr Nardella to repay the money "whether he likes it or not", and was seeking the best mechanism to do so.
He told reporters he hoped Mr Nardella would agree to pay rather than parliament needing to resort to measures to enforce repayment.
Mr Andrews also this week announced a sweeping overhaul of the parliamentary allowances system, including restricting the second residence allowance to those representing regional seats.
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