(Reuters) - British American Tobacco ( BTI ) said on Friday a plan has been filed in a Canadian court to potentially resolve and settle its Canadian subsidiary's tobacco litigation in the country, more than five years after the unit filed for bankruptcy protection.

BAT's unit Imperial Tobacco Canada (ITCAN) has been under a court supervised mediation process negotiating a possible settlement of all its outstanding tobacco litigation in Canada.

The unit had sought bankruptcy protection in 2019 shortly after a Quebec court upheld a 2015 decision that awarded smokers in the Canadian province around C$15 billion ($10.88 billion) in a blow to subsidiaries of BAT, Philip Morris International and Japan Tobacco International.

BAT had said it would set aside 436 million pounds ($569.68 million) in 2019, after the Quebec court upheld its decision.

The court-appointed mediator's and monitor's plan of compromise and arrangement has been filed in the Ontario Superior Court of Justice, BAT said on Friday.

"The plan resolves all Canadian tobacco litigation and provides a full and comprehensive release to Imperial, BAT and all related entities for all tobacco claims," ITCAN said in a statement published by BAT.

BAT did not share details of the plan but said the unit was supportive of the settlement framework and structure.

The settlement will be funded by cash on hand and cash generated from the future sale of tobacco products in Canada, the unit said.

($1 = 1.3789 Canadian dollars)

($1 = 0.7653 pounds)

(Reporting by Yadarisa Shabong in Bengaluru; Editing by Mrigank Dhaniwala)