(Update with more spokesman comment)

TRIPOLI, July 17 (Reuters) - Families of HIV-positive children in Libya received a financial settlement on Tuesday in a deal that could free six foreign medics condemned to death on charges of infecting them, a spokesman for the families said.

"All the families received the compensation money. They are now signing documents saying they got the compensation and accept the High Judicial Council to take the decision it sees appropriate on the six medics," Idriss Lagha told Reuters.

Lagha numbered the families receiving the compensation at 460, each family getting $1.0 million.

"The money came from the Benghazi International Fund, which is financed by the European Union, United States, Bulgaria and Libya," he said. "The signed documents will be taken to the council in the next hour or two."

When asked if the families had pardoned the medics, he said: "The families stated ... that the Council is authorised to take the decision it sees appropriate, whether to free the medics or commute their sentences or make another ruling."

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