Kuwaiti logistics firm Agility said on Monday it is in talks with the US government regarding a settlement in a fraud case, but no deal has been reached yet.

'A deal has not been reached until now, and there are no guarantees that these negotiations would lead to a solution,' Agility said in statement on the Kuwaiti bourse website on Monday.

Earlier on Monday the Kuwait bourse halted trading in Agility's shares pending clarification of reports that the logistics firm is near to a settlement.

Several Kuwaiti newspapers carried reports on Monday about Agility seeking a settlement of up to $600 million with the US government.

Agility is accused of overcharging the US Army on $8.5 billion worth of contracts to provide food to soldiers in Iraq, Kuwait and Jordan. Agility shares fell 1.5 per cent on the Kuwait bourse after trading resumed.