Canada’s government is willing to sign off on multimillion-dollar settlement packages for Canadians Michael Spavor and Michael Kovrig to compensate them for the near three years they were incarcerated in Chinese prisons, the Globe and Mail reported on Tuesday, citing government sources.

Federal lawyers are in compensation talks with the two men, who were detained in 2018, and are hoping to conclude financial settlements early in the new year, the media outlet said, adding that Canada was concerned by a potential lawsuit from Spavor that could put a spotlight on a government security reporting programme.

Canada and the United States say that the detention of the Canadian men – dubbed by Canadian media as “the two Michaels” in a case followed closely – was illegal and arbitrary, an accusation Beijing denies.