David Jones settles in sex lawsuit

David Jones CEO Mark McInnes. Photo / Getty Images

SYDNEY - The parties in the A$37 million ($48.5 million) David Jones sexual harassment lawsuit have reportedly agreed on a six-figure payout.

The breakthrough is understood to have taken place during conciliation talks in Sydney, when David Jones publicist Kristy Fraser-Kirk emerged smiling arm-in-arm with her partner.

Media outlets on Saturday reported the out-of-court settlement to be in the region of A$850,000.

Both parties declined to comment after the mediation.

But it is believed an agreement was reached on the major terms including a settlement figure, although the deal still had some legal issues to be negotiated.

The 27-year-old launched the lawsuit - Australia's biggest sexual harassment case - in the Federal Court in Sydney against the department store group, nine directors and former chief executive Mark McInnes.

Fraser-Kirk claims McInnes made unwelcome sexual advances to her and that the retailer tolerated his continuing sexual misconduct.

The allegations are denied.

McInnes resigned in June, publicly admitting he had behaved "in a manner unbecoming of a chief executive to a female staff member".

- AAP