The government of India and Union Carbide Corp. have resumed negotiations on an out-of-court settlement to compensate victims of the 1984 Bhopal gas leak disaster, the Dainik Bhaskar newspaper said Saturday.

The Bhopal English language daily newspaper quoted highly placed sources as saying that Union Carbide executives and representatives of Prime Minister Rajiv Gandhi's office held two rounds of talks recently in London and in New York.A spokesman for Gandhi denied the prime minister's office was involved in negotiations with the U.S. corporation, but he was unable to say whether talks were being conducted by other government departments. No comment was available from Union Carbide.

The Dainik Bhaskar said Union Carbide had offered an out-of-court settlement of more than $450 million in compensation for the 500,000 people the government claims were permanently affected by the Dec. 3, 1984, leak of poison gas from the firm's now-closed pesticide plant in Bhopal, the Madhya Pradesh state capital, 375 miles south of New Delhi.