Ground Zero workers affected by the dust during the 9/11 clean-up operation will be awarded compensation.

New York authorities have agreed to pay US$657.5 million (£434m) to workers at Ground Zero who have suffered ill-health due to the dust created by the September 11 World Trade Centre attacks, 2001.

More than 10,000 people have been affected by the toxic smoke and dust mix that was created when the buildings collapsed, and are now likely to receive payments of thousands, some up to $1m.

Claimants, which include civilians, uniformed service personnel, and private contractors, have to be able to prove that they were affected by working at Ground Zero.

Mayor Michael Bloomberg called the settlement “a fair and reasonable resolution to a complex set of circumstances”. He said: “The resolution of the World Trade Center litigation will allow the first responders and workers to be compensated for injuries suffered following their work at Ground Zero.”

Most of the money to be paid out will come from the $1 billion Federal Emergency Management Agency grant. Christine LaSala, of WTC Captive Insurance Co. which has been involved in the settlement, said: “We have reached a settlement that is fair under difficult and complicated circumstances.

“This agreement enables workers and volunteers claiming injury from the WTC site operations to obtain compensation commensurate with the nature of their injuries and the strength of their claims, while offering added protection against possible future illness.”

The settlement, although agreed on Thursday (11 March), must still be approved by a judge and agreed to by 95% of the claimants.

Campaigner John Feal, who was injured and affected by helping with the 9/11 clear-up, told the BBC: “The sad thing is while my physical injury is gruesome and it’s visible, the thousands of men and women that are on this lawsuit – close to 11,000 – their illnesses are invisible and after eight and a half years we have now been vindicated for crying wolf.”