THE owner of Kittens strip club is negotiating a secret financial settlement with the Comanchero outlaw motorcycle gang in a bid to resolve a violent two-year feud that has included a string of drive-by shootings and a fire bombing.

Several underworld sources have told Fairfax Media that Jason Dimozantos, who owns Kittens in South Melbourne and Caulfield South, has directed a representative to pay off the bikie gang to stop the repeated attacks on his venues.

It is understood that attempts have also been made to find an independent mediator.

Comanchero national president Mick Murray is understood to want $250,000 to end the bitter vendetta, in a deal described by a senior police source as "obviously extortion".