Lagarde, aged 59, is under investigation for alleged negligence in connection with a $445m state payout to businessman Bernard Tapie over the sale of his sportswear company Adidas.

Prosecutors say that during mediation she pushed for a settlement that was far more than might have been decided by a court.

A senior prosecutor associated with the court trying the case made the recommendation Tuesday, news agency AFP reported, citing an unnamed source.

It is now up to the Law Court of the Republic, which investigates allegations of ministerial wrongdoing, to decide whether to drop the case, the report said.

A spokesperson for the IMF in Washington declined to comment. Lagarde has previously said the charges were unfounded and denied wrongdoing.