In this file photo taken on Nov 9, 2021,
children's toys and shoes sit on the porch as a tribute to the missing children of the former Mohawk Institute Residential School, in Brantford, Canada. (COLE BURSTON / AFP)

Canada has reached an agreement to settle a class-action lawsuit seeking compensation for the loss of language and culture brought on by Indian residential schools, for C$2.8 billion ($2.09 billion).

The settlement builds on the 2021 Gottfriedson Day Scholars settlement, that provided individual compensation to day scholars who attended a residential school but did not reside at the institution.

Canada will provide the settlement amount to a non-profit trust, independent of the government, as part of the class settlement

Canada will provide the settlement amount to a non-profit trust, independent of the government, as part of the class settlement.

The organization charged with administering the trust will be governed by a permanent board consisting of nine indigenous directors, the government said in a statement.

READ MORE: Remains of 215 children found at former indigenous school in Canada

The terms of the settlement are yet to be approved by the Federal Court.