UBS is in the final stages of negotiating a settlement with US and British authorities in which the giant Swiss bank is likely to pay more than $1bn to resolve allegations that it attempted to manipulate benchmark interest rates, according to people briefed on the negotiations.

UBS and the authorities are currently on track to announce the settlement early next week, these people said. They cautioned that the discussions are still in progress and that the parties previously have been near deals in the past, only to see them unravel.