Germany's biggest bank is set to reach a settlement with US and British authorities over claims of interest rate manipulation, and pay a penalty of some 1.5 billion dollars, dpa cited US media as reporting.

Deutsche Bank AG could resolve the case this month, The New York Times newspaper and Bloomberg financial newswire reported, quoting people familiar with the matter.

A British subsidiary of the bank is expected to plead guilty, the reports said.

"We continue to work with the authorities that are reviewing interbank offered rates matters," Deutsche Bank was quoted as saying in a statement.

The estimated penalty would be the highest paid by any bank so far in the long-running probe into the rigging of bank-lending rates, The New York Times said.

Trillions of dollars of transactions worldwide depend on the Libor interest rate, which is calculated by submissions from major banks and serves as a reference for everything from mortgages to credit cards.

Deutsche Bank still faces a number of investigations in other cases, including alleged currency manipulation and violations of US sanctions against countries like Iran, the New York Times reported.