Jamal's son Salah Khashoggi said that no such settlement was discussed currently or before, adding that trial for his father's murder is underway.
"Currently, the trial is taking place and no settlement discussion had been or is discussed. The people who committed and were involved in this crime will all be brought to justice and face punishment," he said in a statement posted on Twitter.
"We understand the urge to know what transpired regarding the case, and we will be sharing the developments as soon as they are legally admissible and allowed. There are no friends or consultants or any third party authorised to speak on our behalf or claim to be a source of information except for us, Jamal's children and Mr. Motasem Khashoggi our attorney," Salah added.
Khashoggi, who was a journalist with The Washington Post and a vocal critic of the Saudi regime, was killed in the Saudi consulate in Istanbul on October 2 last year, where he had gone to obtain paperwork certifying his divorce with his former wife Alaa Nassif in order to be able to marry his Turkish fiancee Hatice Cengiz.
After presenting several contradictory theories, Saudi Arabia acknowledged that Khashoggi was killed in the consulate premises in what it had described as a "rogue operation".
Salah's brother, Abdullah, and two sisters have also been given houses together in a different compound, the source added.
Earlier this month, the source further said that Khashoggi's family received millions of US dollars in cash and assets as compensation for the killing. The family may also be entitled to receive the so-called "blood money" payments under the Saudi justice system.
According to US intelligence agencies, Khashoggi's murder was enacted upon orders given by Saudi Crown Prince Mohammad bin Salman. However, Saudi Arabia has repeatedly rejected all the allegations against its Crown Prince, adding that it is committed to bringing the perpetrators to justice.
Meanwhile, prosecutors are seeking death penalty for five of 11 people allegedly involved in Khashoggi's murder.
If the accused people are convicted and given the death penalties, the Saudi justice system would allow Khashoggi's family to grant mercy to the alleged murderers through the so-called "blood money" arrangement.
Under the Sharia law, blood money is a legal mechanism, where the accused pays an amount to the victim's family in order to escape the death penalty.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)