STORY: Boeing is set to face criminal charges over fraud following the two fatal crashes of its 737 MAX jets some years ago.

Reuters sources said Sunday that the U.S. Department of Justice had decided on the course of action.

There was no comment on the report from officials or the company.

The deadly crashes took place in 2018 and 2019, killing 346 people.

They were later traced to a design flaw in the jets, which has since been fixed.

Boeing later agreed a deferred prosecution deal, which shielded it from criminal charges.

That was in return for compensating victims' families, and taking steps to improve compliance.

But in January this year, a midair blowout on another MAX jet revived concern over how well the planes are made.

Prosecutors subsequently concluded that Boeing had not honored the terms of the deferred prosecution deal - something the company disputes.

Now Boeing will reportedly have until the end of the week to plead guilty or face a trial.

It is expected to see a new financial penalty, and will have to submit to independent monitoring.

Pleading guilty may not be an attractive move for the firm, which is also a big maker of military aircraft and other defense gear.

Companies with felony convictions can face restrictions on government contracts, though it's possible a plea deal could include terms that avoid such an outcome.