The case is connected with a prosecution he describes as politically motivated and links to attempts to challenge the 2020 election results, according to the outlet.

The legal cases against Trump's campaign team were part of a broader crackdown on efforts to contest the election, including probes related to the January 6 Capitol attack. Trump and his allies repeatedly claimed fraud after losing the vote to Joe Biden.

The Department of Justice is reportedly negotiating a settlement of Flynn's claim in a shift from the previous administration's approach, when government lawyers fought the case.

Apart from Flynn's lawsuit, the agency is reportedly trying to settle a case brought by former senior White House lawyer Stefan Passantino, who claims that a government investigation into the 2020 election and January 6 damaged his reputation through leaked private information.

Court filings indicate that no specific financial compensation demands have been publicly disclosed in his case, Bloomberg noted.

Flynn and Passantino filed lawsuits in 2023. Flynn lost the first round of his civil damages suit last year, and the US attorney's office in Atlanta continued defending a judge's dismissal of Passantino's case through June.

Flynn initially pleaded guilty to making false statements acknowledging that he had misrepresented his contacts with a Russian official. He later reversed his position and challenged the charges. Trump pardoned him in late 2020, bringing the case to a close.

The extensive legal action against Trump's team has affected numerous allies, including figures involved in the post-election unrest and protests at Capitol Hill. Many of them were pardoned either recently or at the end of Trump's first term.