Under the settlement agreement, a six-month jail sentence for the executive has been converted into the payment of a 45,000 euro ($49,126) fine, the source said.

Under Italian law, a settlement agreement does not imply an admission of guilt.

Milan prosecutors investigating the allegations have asked for the case against two managers from the Italian subsidiary of Apple to be dropped, the source said.

Apple was not immediately available for comment.

(Reporting by Emilio Parodi, writing by Silvia Aloisi, editing by Valentina Za)