But that figure is substantially lower than the 112 million euros - based upon alleged undeclared earnings of 60 million euros from 2000 to 2004 - previously quoted by the Italian tax authorities.

"Yes, I think it is finally over," Rossi's lawyer Lucio Monaco told Quotidiano.net. "Valentino will pay 20 million. And then he'll return to laughing, winning and taking things as they come. And his home will be in Italy.

"Rossi has gone through too much during all this, more than people imagine. He is not a tax evader and the proof is his decision to pay. He did not want a war, just an agreement."

Rossi's lawyer added that the deal was "no admission of tax evasion."

The seven-times world champion, who lists London as his official residence, intends to pay the 20 million through instalments.

A meeting to finalise the deal is expected to be held on February 12.