Volkswagen on Thursday said it had reached an agreement in principle with owners of 3.0-liter cars affected by its emissions cheating scandal.

The announcement follows this month's $1 billion settlement with US authorities for the roughly 80,000 vehicles in the 3.0 liter category, involving the buyback, repair or cancellation of leases for the affected vehicles and helping the company inch closer toward putting the scandal behind it.

In a statement, the company said it reached an agreement and that US District Judge Charles Breyer had ordered settlement approval documents be filed with the court by the end of January.

Elizabeth Cabraser, lead counsel for the plaintiffs in the class-action suit, said in a statement that owners would receive "substantial compensation in addition to an emission modification or buyback, depending on the generation of vehicle."

Volkswagen admitted last year it had installed software in as many as 11 million vehicles sold worldwide to circumvent tests for emissions while enabling them to release up to 40 times the permitted amounts of nitrogen oxides during actual driving.

Volkswagen in October finalized a record $15 billion settlement for 2.0-liter Volkswagen and Audi vehicles but faces a pending criminal probe by US authorities into the emissions cheating case.