As many as 180 haemophiliacs infected with hepatitis C through transfusions of infected blood in the 1980s and early 90s could receive cash settlements from the Government within a month.
And the payment is expected to come with an apology from then-Health Minister Helen Clark.
The sufferers stand to receiveup to $63,000 each in the $11 million compensation deal, details of which will be released next month.
They are also expected to receive a letter of apology, but the Prime Minister's office was last night refusing to confirm if she would be saying sorry.
Haemophilia Foundation vice-president Deon York said the group was "closer than we've ever been" to a settlement, but was still cautious.
"One of the most important things in this settlement is receiving the apology. For a lot of people who've lost loved ones due to hepatitis C through receiving bad blood, this is long overdue but it's still welcome nonetheless," Mr York said.
The foundation has been waging a 15-year battle on behalf of members. In 2002, the Government set aside $7 million in compensation after an inquiry found that screening tests were available from 1990, but had not been introduced until two years later.
But to qualify for the $44,000 compensation, claimants had to prove infection between February 1990 and July 1992, when testing began - impossible for many haemophiliacs, who need regular transfusions and may have been re-infected repeatedly.
The new deal might also be extended to hundreds of other non-haemophiliacs who caught the virus through tainted transfusions, the Press reported. An estimated 700 people, including haemophiliacs, are believed to have been affected.
Mr York, an Auckland University researcher, discovered he had hepatitis C in the early 90s, but ridded himself of the virus through weekly injections of interferon and daily doses of anti-viral drug ribavirin for 11 months.
He said it was a very difficult treatment to undergo, and the side-effects were similar to chemotherapy.
Others have not been as lucky.
"A lot of people have had repeated treatments over many years and are still not clear of hepatitis C. It continues to impact on their life years after having contracted it."
Hepatitis C attacks the liver, and can cause cirrhosis and cancer.
