The Czech government proposed to pay 83 billion crowns ($4.64 billion) in damages to churches on Wednesday for property confiscated by the country's former communist rulers.

The proposal, based on a deal between the state and 17 churches, should finally put an end to church restitution claims and solve a row that has dragged on since the fall of communism in the 1989 "Velvet Revolution".

"This will compensate for some property misdeeds, (returning) property that was basically stolen by the Communists under the previous regime," Prime Minister Mirek Topolanek said.

The payout would constitute two thirds of an overall package, with the rest comprised by the return of some land nationalised by the Communists.

The Czech Republic is one of the most atheist nations in Europe. Among active religions there, the Roman Catholic church is by far the biggest, followed by protestant denominations.

The proposal, which must be enshrined in a draft law and approved by parliament, calls for the sum to be paid over 60 years, with 4.9 percent interest. It will gradually end state subsidies to churches that go mainly toward priests' salaries.

The 83 billion crowns in damages is for two thirds of the land the churches claim for restitution but have agreed to give up for the compensation. A spokesman for the Prague Archdiocese church said it was happy with the proposal.

The communists, who ruled in then Czechoslovakia from 1948 until 1989, confiscated most private property from churches, businesses and individuals and closed a number of monasteries. Many priests and monks emigrated or were jailed, and a number of churches and monasteries were abandoned or served as army barracks and storage space.

The proposed payout is equal to about 2.4 percent of Czech annual gross domestic product - all goods and services produced there - and is bigger than last year's government budget deficit of 1.9 percent.

The package was agreed by ministers from all three parties in the centre-right coalition cabinet, but it may face a bumpy ride in parliament, where the government has just 100 of the 200 seats.

Several back-benchers from the main government party, the Civic Democrats, have questioned the overall sum to be paid out.