(Reuters) - News International is expected to pay about three million pounds($4.7 million) to settle hacking claims by the family of murder victim Milly Dowler against the now defunct News of the World newspaper, sources close to the case told Reuters on Monday.

The settlement is likely to involve close to a two million pound payment to the murdered schoolgirl's family and a donation of at least one million pounds to charity.

News International and Mark Lewis, lawyer for the family, declined to comment.

($1 = 0.639 British Pounds)

(Reporting by Avril Ormsby)