Rossi reaches settlement in tax probe

The agency last year accused Rossi of evading taxes on undeclared revenues of 60 million euros from 2000 to 2004.

The investigation was linked to Rossi's decision to move to Britain to take advantage of favourable tax conditions.

"I really think it's over," Rossi's lawyer Lucio Monaco was quoted as saying by Bologna's Il Resto del Carlino. "Valentino will pay 20 million euro. And he will laugh, win, and take it as it comes again, and Italy will be his home.

"He suffered too much because of this story, a lot more than people can imagine. He is not a tax evader and the proof is in his decision to pay: he didn't want a war but a fair agreement."

Victor Uckmar, Rossi's business consultant, added: "It's a sacrifice Rossi has done for the sake of his career. He didn't want the oppression of the tax office investigation to go on for a decade. If not for his racing, he's done it to leave these worries behind.

"No one can say he's a tax evader, because when someone is a resident in Europe and not in some tax heaven, it means he isn't trying to evade the Italian tax office. Let's say that this page is now closed."

The amount Rossi was supposed to pay before the deal was an estimated 112 million euros, based on incomes of 60 million euros earned in the four-year period.

Italian media reported there is still a final meeting to finalize the deal. This meeting is scheduled at the Pesaro tax office on 12 February.

Rossi's father Graziano told Corriere della Sera: "Valentino's transaction with the tax office isn't closed yet. I know they are close to the end, but they aren't there yet.

"There's still at least another important meeting still to be held, after which we hope it's the last one, because I know that Valentino absolutely wants to get to the beginning of the season with the situation solved."