Car manufacturer Volkswagen has agreed to pay $225 million (£180m) to resolve claims from owners of vehicles affected by the emissions scandal.

It has agreed with the United States Department of Justice (DOJ) on behalf of the Environmental Protection Agency and the State of California to provide the money to an environmental trust.

It will be used to resolve civil claims regarding around 83,000 affected 3.0L TDI V6 diesel engine vehicles in the US.

The document also includes provisions for a recall for around 63,000 vehicles and the buyback and lease termination or emissions modification of 20,000 older cars.

Furthermore, the company will provide $25 million (£20m) to support the use of zero emissions vehicles in California

Hinrich J. Woebcken, President and CEO of Volkswagen Group of America said: “The agreement announced by the Court today between Volkswagen and US environmental regulators is another important step forward in our efforts to make things right for our customers and we support the efforts of the Court to bring about a fair and reasonable resolution of remaining 3.0L TDI V6 claims as quickly as possible. We are committed to earning back the trust of all our stakeholders and thank our customers and dealers in the United States for their patience as the process moves forward.”