Billionaire business tycoon Sir Philip Green has struck up a deal to pay out more than £350m ($440m) to cover the pension costs of former BHS workers. This falls short of previous estimates that the agreement could set the magnate back by £1bn.

The Pensions Select Committee called for Green should pay out a "nuclear" fine triple the amount tabled, but the businessman is set to be signing a provisional agreement with The Pensions Regulator as early as next week.

More about Sir Philip Green

In the report from Sky, the agreement will reportedly end the eight months of controversial speculation over the payouts, with the controversial businessman promising to "sort" the bankrupt company's deficit, which affects the pension plans of 20,000 of the company's former employees.

Although Green declined to comment on the deal, a spokesman for the pensions watchdog said: "We remain in discussion with Sir Philip's advisers.

"Any settlement offer we accept has to be robust enough to stand the test of time and mean that members and the PPF are not left in a worse position further down the road."

Although the agreement's exact details are yet to be released, the deal means that lump-sum payouts are expected for workers with smaller pension plans. However, employees will face some modest cuts made to their pensions.

The Pensions Regulator took up legal action against Green and Dave Chappell, the former co-owner of BHS, in November of last year to speed up the agreement.

Green has faced pressure to pay up since the high street chain went into administration in April 2016, leaving the pension fund with a gaping deficit of £571m and 11,000 employees without jobs.

The chairman of the Business Select Committee, Iain Wright, has now estimated that amount is now closer to "something like £600 million or £700 million".

Speaking about his regrets, Green said that "stupid, idiotic mistakes" had been made regarding the chain's pension scheme.

He said: "Nothing is more sad than how this has ended."

The disgraced tycoon could be stripped of his title after the House of Commons made a unanimous decision to remove it. The three-hour debate saw Green dubbed as "a billionaire spiv", with another MP calling the affair "a Greek tragedy".