World health authorities stepped up their fight against tobacco

The health ministry said it had already rejected a lower offer from the tobacco firms, though did not say what level of compensation it was seeking.

According to local data, Saudis spend 5bn riyals (£683m; $1.3bn) a year on tobacco and smoking-related goods.

Saudi Arabia has been stepping up its efforts to stop its population smoking.

A royal decree has banned smoking in all government and state buildings, while there is also a ban on advertising cigarettes in the local press or on television.

One out of every 10 Saudis smokes, the World Health Organization estimates, though some analysts and groups have questioned this figure, saying that it is closer to 30%.

Reuters quoted the Anti-Smoking Society as saying that 22,000 Saudis died of smoking related diseases every year.

Health Minister Hamad al-Manie said: "Representatives of tobacco companies have to pay both the patients and the health ministry for the costs of treatment.

"Otherwise, the ministry will go ahead with the lawsuit."