Notorious BIG was murdered in Los Angeles in 1997

His family, who accused two ex-Los Angeles policemen of conspiracy in his 1997 killing, said the payment would stop them taking further legal action.

But LA City Council said: "Why would we pay if we're not culpable of anything?"

The rapper's family tried to sue the Los Angeles Police Department (LAPD) for wrongful death earlier this year.

Evidence withheld

Notorious BIG - whose real name was Christopher Wallace - was killed on a street in Los Angeles in March 1997, after seven shots were fired into his vehicle.

Police closed an investigation into his death earlier this year, saying there was not enough evidence to prosecute.

The documents uncovered during the civil trial detail Detective Steven Katz's investigation of a prison informant's claim that former LAPD officers Rafael Perez and David Mack were involved in killing the 24-year-old rapper.

This led US judge Florence-Marie Cooper to state that a police detective had intentionally concealed the documents and declare a mistrial last month.

They're trying to hold the taxpayers responsible Los Angeles City Council spokesman Dennis Zine

Following the mistrial, US District Court requested that the city of Los Angeles pay the rapper's family approximately $1.6m (�884,000) in lawyers' fees plus $500,000 (�276,000) for expenses.

On Wednesday lawyers for the late rapper's family said they had also sought a $18m (�9.9m) settlement to spare the city further litigation.

"We're giving the city the chance to stand up and do the right thing and not be painted with the really ugly brush that people in the LAPD could be painted with," lawyer Perry Sanders said.

But the council voted to reject the settlement demand on Wednesday.

"To my knowledge there's been no connection established with the police department," spokesman Dennis Zine said.