Alphabet's (GOOG, GOOGL) Google unit has agreed to pay $135 million to settle a proposed class action alleging that Google programmed its Android operating system to collect users' cellular data without permission, Reuters reported Wednesday, citing a court filing.

As part of the settlement, Google also agreed it will not transfer data without obtaining consent when Android users set up their phones, the report said.

Google has denied wrongdoing in agreeing to the preliminary settlement filed Tuesday night in the San Jose, California, federal court for a judge's approval, Reuters said.

Google did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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