Two Wimbledon sisters who lost their father in the Japan Airlines crash of 1985 have reached an out-of-court settlement with the airline after suffering 16 years of grief.

Cassie and Diana Yukawa daughters of the wealthy Japanese banker Akihisa Yukawa were offered an undisclosed sum by Japan Airlines (JAL) after two years of legal negotiations.

The amount which cannot be disclosed due to a secrecy agreement is believed to be more than the £60,000 sum originally offered but rejected by the family, although way below the £900,000 figure that was reportedly awarded to Mr Yukawas two Japanese sons.

This marks the second victory for the sisters after they hit the headlines in March 2000 when they were legally recognised as Mr Yukawas daughters by the High Court.

The girls mother, Susanne Bayly, had lived with Mr Yukawa in London at the time of his death, although he was technically married with a family in Japan at the time. DNA evidence later gave the sisters the right to be legally recognised as the businessmans daughters.

Ms Bayly hopes the settlement will enable 16-year-old Diana a gifted violinist and her pianist sister Cassie, 20, to fulfil their music careers.

She told the Guardian: I am disappointed by the amount but I am also happy. It is meaningful to see that Diana and her sister can now reach their full potential because they can fund their really expensive training.

It is something that has been offered in memory of a great man.

Diana, who had to sell her prized violin to fund her training, is now working with a borrowed instrument. She is soon to be tutored by one of the worlds top teachers and has recently been awarded a place with the English Chamber Orchestra.

A JAL spokesman said: "We are very pleased we have been able to reach an agreement on a financial settlement with Ms Bayly and her daughters Cassie and Diana.

"Lawyers for JAL and Boeing have been negotiating with Cassie and Dianas lawyers with a desire to reach a settlement that is fair to all concerned.

"We wish Ms Bayly and her talented daughters happiness and success in the future."