The US tax authority is to cease its civil action against UBS after the Swiss government handed over details on 2,000 US clients suspected of using their accounts to evade taxes, according to media reports of a statement by the Internal Revenue Service.

A deal was made in August 2009 for 4,450 names; the IRS said it expected to receive information on the remaining 2,450 this autumn.

“Based on information received to date and assurances by the Swiss government, we anticipate being in a position to withdraw the John Doe summons [that would have sought up to 52,000 client names] this fall,” the statement said.

The announcement will come as relief to UBS, which has been battling to rebuild its fortunes in the wake of the US case and after suffering heavy losses from the credit crunch. The Swiss bank recently announced a new marketing drive around the world.