The Malaysian Government has confirmed it has chosen a company to begin a new search for MH370 and is now negotiating the terms of the deal.

It has notified the families of the 239 people lost aboard MH370 that it is negotiating the terms and conditions of the search with US company Ocean Infinity.

The seabed exploration company had offered to look for the missing Boeing 777 aircraft on a no-find, no-fee basis.

MH370 disappeared over the southern Indian Ocean in March 2014 while flying from Kuala Lumpur to Beijing.

The initial search of the ocean floor was suspended in January after no trace of the plane was found on the ocean floor.

Advice sent today to MH370 families states that the MH370 Response team, "received several proposals from interested parties to search for MH370. This include an offer by a company known as Ocean Infinity on a No Cure No Fee basis".

"These offers have been thoroughly assessed by the team and the Governments of Australia and China have been informed of this in line with the spirit of tripartite cooperation.

"In this regard, the Government of Malaysia has given the permission for the response team to proceed negotiating the terms and conditions with Ocean Infinity."

Malaysian authorities have told the families they will make an official announcement about the search after all next-of-kin have been notified.