Two Malaysian boys whose father was a passenger on the jetliner that vanished in March last year have secured an out-of-court settlement in the tragedy's first legal case against Malaysia Airlines and the government.

Lawyer Arunan Selvaraj said on Tuesday that the boys' mother decided to accept compensation on their behalf so that they can "move forward with their lives". Arunan declined to reveal the amount.

Malaysia Airlines Flight 370 was en route from Kuala Lumpur to Beijing with 239 people on board, including 154 from China, when it disappeared on March 8 last year.