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MOSCOW, September 15 (RIA Novosti) - The...

A settlement could come before the next hearing, set for October 20, the paper said, citing a person close to the talks.

But the paper said a deal still needed final approval from the Russian government. Russian officials declined to comment on when a decision might come or what it might be, the paper said.

Russia"s Federal Customs Service filed the lawsuit in Moscow in May 2007 after accusing the bank of channeling funds received for exports to Russia in the late 1990s through accounts held at the bank.

The suit sought damages from the bank related to a U.S. Justice Department investigation in which a Bank of New York vice president allegedly helped to transfer $7 billion out of Russia in the late 1990s.

A Bank of New York spokesman declined to comment on Monday, as did the customs service, the paper said.

The bank has been in settlement discussions on and off since the spring. The judge in the case encouraged the two sides to settle and has repeatedly

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