Key Safety Systems (KSS) has agreed terms on its US$1.6bn purchase of Takata assets and final documents will be signed in less than two weeks, a lawyer for the airbag inflator maker's US unit reportedly has said.

Reuters noted Takata and US unit TK Holdings filed for bankruptcy last June and the asset sale to KSS was the cornerstone of a plan to raise funds to compensate automakers and drivers.

The news agency added TK lawyer Marcia Goldstein told a US bankruptcy judge on Monday a US deal had been reached and was being reviewed by lawyers in Japan, Germany and elsewhere.

"The documentation is fully negotiated, subject only to what all the lawyers agree is clean up," Goldstein was quoted as saying.

The sale must be approved by the US Bankruptcy Court in Delaware, as well as regulators, Reuters added.

TK Holdings said, when it filed for bankruptcy, final papers on the sale to KSS, a Michigan-based parts supplier owned by China's Ningbo Joyson Electronic, would be provided within "a few weeks".

Reuters also noted KSS plans to take over Takata's viable operations while remaining operations will be reorganised to continue making millions of replacement inflators.