A reliable source has told WHAS11 that there is a settlement in the works between Kentucky's governor and the attorney general regarding the Governor's criminal charges.

Settlement negotiations have been going on for the past 48 hours, the source said Wednesday.

Attorneys for Governor Fletcher and the AG's office are negotiating a possible settlement that would end the criminal prosecution of the governor.

The source said negotiations were "fruitful," but there is no word on what any possible settlement might entail, or whether Fletcher has agreed to plead guilty to any criminal charges.

A spokeswoman for the attorney general's office, Vicki Glass, said, "We hope to have a press conference tomorrow (Thursday) should there be something to announce." She said there is no settlement in the case as of Wednesday night.

Calls made to Fletcher administrative officials were not returned.

Governor Fletcher is charged with three misdemeanors in connection with alleged violations of Kentucky’s merit laws.

Last week a judge refused to dismiss the charges against Fletcher, but ruled that he cannot stand trial until he is out of office.

Fletcher has pardoned everyone who's been charged with violating state hiring laws with the exception of him.

Web story produced by Jay Ditzer.

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From The Associated Press:

By BRUCE SCHREINER / Associated Press Writer

LOUISVILLE, Ky. (AP) -- Kentucky Attorney General Greg Stumbo said Thursday that it’s “highly unlikely” that indicted Gov.  Ernie Fletcher will ever stand trial over misdemeanor charges that have plagued his administration for months.

Stumbo said Thursday that he’s been involved in negotiations with Fletcher’s attorney for the last two days.

“I would suspect that something may be submitted to the judge today,” Stumbo said in an interview at the annual Country Ham Breakfast at the Kentucky State Fair. “I think that it’s moved beyond the point of being likely to probable.”

Stumbo, when asked if he wanted an admission of guilt as part of any settlement, said he wanted a recognition that the state’s personnel law was important and that there were “serious violations” of the law. Stumbo also said he wanted to make sure that the alleged abuses of the law will stop and that “someone takes responsibility.”

Fletcher declined to comment on whether there would be a settlement or agreement with prosecutors.

For both Fletcher and Stumbo, resolving the case would be

politically expedient. By settling the matter, Fletcher can seek

re-election without the shadow of criminal charges looming over

him. Meanwhile, Stumbo, who has been considered a possible Democratic candidate, could run without breaking his promise that he wouldn’t challenge Fletcher in a gubernatorial race while the case is pending.

Larry Forgy, a Lexington lawyer and close Fletcher ally, said the case should never have gone on this long.

“It shows that, after whatever political damage has been done to this governor, that this is immaterial enough to go out and settle it,” Forgy said. “It shows that this has been stupid excess—all that we’ve went through here, to attempt to destroy a governor.”

Forgy said Stumbo couldn’t have ethically run for governor against Fletcher as long as the case was pending.

“I think he’s settling this because he intends to run,” Forgy said. “I hope what we can do now is to have an election between Fletcher and Stumbo to settle who was right and who was wrong in this stupid excess.”

Stumbo said Thursday that “it’s highly, highly unlikely that the governor will ever stand trial. He has the option of pardon, which in my opinion is something he could use before he left office.” Stumbo said the special judge in the case, David E.  Melcher, has encouraged settlement talks.

The governor has been under investigation since May 2005, and prosecutors impaneled a special grand jury that June. The panel has returned 29 indictments in the case since then, but Fletcher issued pardons to anyone charged in the probe.

Fletcher was indicted in May on misdemeanor charges of criminal conspiracy, official misconduct and political discrimination. He has pleaded not guilty to the charges.

Scott Lasley, a political scientist at Western Kentucky University, said a settlement may get the investigation out of the news for a while. However, Lasley said it would still be hard for the governor to recover politically.

“I don’t think it’s a huge boost, but it probably makes day-to-day life easier,” Lasley said.

State Democratic chairman Party Jerry Lundergan said a settlement that leads to protections for state employees from politics, would show Stumbo had done his job properly.

“If he (Fletcher) tells the people of Kentucky that he’s sorry, I think that everything that could be done has been done,” Lundergan said. “The attorney general has done his job.”

Mark Nickolas, former campaign manager for U.S. Rep. Ben Chandler, D-Lexington, said he hopes the settlement doesn’t mean details are swept under the rug.

“We were promised that we would learn the unvarnished truth,” said Nickolas, now a political blogger who has closely followed the case. “This goes far beyond Ernie Fletcher and Greg Stumbo. This is about accountability. A plea deal can’t be about anyone’s political ambitions. This has to be about getting to the truth about what went on. The public deserves to know, after all that’s gone on, what exactly happened.”

Kentucky Secretary of State Trey Grayson, a possible challenger to Fletcher in next year’s Republican primary, declined comment about the possibility of a settlement.

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Associated Press Writer Roger Alford in Frankfort contributed to this report.

(Copyright 2006 by The Associated Press.  All Rights Reserved.)