Libya has signed a compensation accord worth €132.5m with families of victims of a 1989 French jetliner bombing over Africa.

The UN Security Council will vote on Tuesday on a British proposal to lift sanctions against Libya, though France and Tripoli are still deadlocked on how much to pay the families of 170 people killed in an 1989 airliner bombing, diplomats said.

Negotiations with Libya over increased compensation for families of victims of a 1989 French airliner bombing over the Niger desert have hit an impasse, a representative the families said today.

Families of victims of the 1989 bombing of a French airliner returned from Libya saying that negotiations had failed to win a compensation package on par with the €2.5bn Lockerbie settlement.