Representatives of the city and Filner's attorneys reached a tentative settlement Wednesday, which the city council will vote on Friday in closed session.
The terms of the settlement were not revealed, but KGTV said its city hall sources confirmed it would include Filner's resignation immediately after its approval.
The lawsuit was filed by a former mayoral aide, who is one of nearly 20 women who have come forward in recent weeks with claims Filner made lewd and unwanted advances toward them. U-T San Diego said the plaintiff, Filner's former communications director, had demanded his resignation as part of any settlement.
One hang-up in the negotiations had been how much taxpayers would have to pay for his alleged misdeeds, leading to the inclusion of Council President Todd Gloria and Councilman Kevin Faulconer in the discussions, U-T San Diego said.
The proposal reportedly centers on Filner's liabilities in exchange for his resignation, U-T San Diego said, adding it was unclear if financial demands from Jackson would be resolved with the pending proposal or handled separately.
If Filner resigns, a special election would be held within 90 days. U-T San Diego said several high-profile candidates are considered contenders, including Gloria, Faulconer, City Attorney Jan Goldsmith, former council member Carl DeMaio, former state Assemblyman Nathan Fletcher and former state Sen. Christine Kehoe.
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