Passengers on the wrecked Italian cruise ship Costa Concordia will receive a compensation lump sum of 11,000 euros (around $14,000) each, the Italian Association of Tour Operators said in a statement Friday.

The vessel struck rocks and rolled onto its side in shallow waters off an island near Italy Jan 13, leading to a panicky evacuation and at least 16 deaths.

As many as 16 people are still missing from the 4,200 people onboard the cruise ship.

The decision was reached during a meeting between Costa Cruises and consumer groups, CNN reported.

The compensation will be paid to each passenger regardless of age, the association said.

The company will also set up a psychological counselling programme for passengers who request it, the statement said.

It said separate agreements will be reached with passengers who were injured and needed treatment at the scene, and with the families of those who died.

The ship's captain, Francesco Schettino, faces possible charges of manslaughter, shipwreck and abandoning ship.

Schettino has admitted he made a "mistake" in colliding with the rocks off the island of Giglio.