USA Gymnastics has reached a proposed $425 million agreement with a committee representing victims of the crimes of disgraced former team doctor Larry Nassar ©Getty Images

USA Gymnastics has reached a proposed $425 million (£308.25 million/€358.8 million) settlement with a committee representing survivors of abuse by disgraced former team doctor Larry Nassar.

Were the agreement to be finalised, around 500 gymnasts who were victims of Nassar’s crimes would receive part of the settlement.

Nassar was accused by hundreds of women of abuse under the guise of medical treatment, and is effectively serving a life sentence in prison as a convicted serial sex offender.

The proposal still needs to be approved by multiple parties, including the US Bankruptcy Court for the Southern District of Indiana and a majority of the claimants that totals two-thirds of the value of the settlement.

Every insurance company involved must also approve the settlement for it to be confirmed.

The United States Olympic and Paralympic Committee (USOPC) urged insurers yet to commit to funding the proposals to pledge their support, per USA Today.

USA Gymnastics said it expects the plans to go through later this year.

If all parties accepted the plans and the settlement was finalised, survivors would not be able to seek further legal action against USA Gymnastics, the USOPC and Bela and Martha Karolyi, who ran and own the Karolyi ranch in Texas where some of the abuse took place.

The New York Times quoted Rachael Denhollander, a member of the committee and a victim of Nassar’s abuse, who explained the importance of planned reforms to USA Gymnastics as part of the plan, including the creation of a Truth and Justice Commission.

"I will say that the survivors deserve help with their medical care, and therapy is not cheap, so I do think they deserve compensation," Denhollander said.

"But it would also be in the best interest of everyone to see actual change and reform to take place in the organisation.

"That’s what we were hoping for.

"Change was our goal.

"The non-monetary provisions of this plan are absolutely key.

"It is reform and change for the next generation.

"If USA Gymnastics does indeed work with survivors to see these provisions through, it would be ground-breaking."

This proposal is nearly double the one which was rejected and criticised by many of Nassar’s victims last year, totalling $215 million (£155.9 million/€181.4 million).

Michigan State University reached a $500 million (£362.6 million/€421.8 million) agreement with 332 survivors of Nassar’s crimes in 2018.