MIR ALI: The government will compensate families of 39 people killed in a recent US drone attack, a Pakistani official said.

It was one of the first times that Pakistan has publicly agreed to compensate victims of US attacks.

The March 17 strike in North Waziristan district was condemned by Pakistan's army chief, who said those killed were innocent civilians attending a meeting.

A US official has disputed that, saying they were militants or militant sympathisers.

North Waziristan government administrator Mohammad Asghar said on Saturday the heirs of the dead, in accordance with Islamic tradition, would each receive US$3,530.