Jul. 31, 2009 (United Press International) -- A U.S. government lawyer said the Justice Department and Switzerland agreed to settle a ground-breaking tax case against UBS (NYSE:UBS) bank out of court.

The case involves the U.S. government's demand for the bank to release the names of 52,000 U.S. citizens -- many presumed to be wealthy -- who have hidden assets from the Internal Revenue Service in the Swiss bank.

UBS paid $780 million to settle criminal charges in February. Although the Swiss government has said it would abide by international guidelines on tax cases, it has also said it is against Swiss law to reveal the names of bank account holders.

The New York Times said Friday Secretary of State Hillary Clinton was scheduled to meet with Micheline Calmy-Rey, the Swiss foreign minister, on Friday in Washington to review the situation.

Stuart Gibson, a prosecutor with the Justice Department said he expected out of court negotiations would resolve the issue by Aug. 7.

Judge Alan Gold canceled the trial that would have begun Monday in the U.S. District Court in Miami.