(Reuters) - Australia's Star Entertainment has agreed to a refinancing deal, which would see U.S. peer Bally's take control of the embattled casino operator, the Australian Financial Review (AFR) reported on Monday.

Under the deal, Bally's will invest about A$250 million ($149.8 million) while Star's largest shareholder, billionaire Bruce Mathieson would provide more than A$50 million, the AFR said, citing three sources with knowledge of the matter.

($1 = 1.6694 Australian dollars)

(Reporting by Aaditya Govind Rao in Bengaluru)