Ireland, which holds the European Union's rotating presidency, expects a compromise to be secured on a proposal to cap bankers' bonuses, Finance Minister Michael Noonan said on Thursday.

Negotiations stalled on Tuesday after EU countries and the bloc's parliament clashed over how far to go in curbing pay for the industry's top earners.

"We think there is a median where a settlement can be reached without upsetting the cost base in the city of London or without depriving people of rightfully earned bonuses," Noonan said in an interview with Bloomberg television. "But it has to be done in a new formulation."

(Reporting by Conor Humphries; editing by Jason Neely)