Kristy Fraser-Kirk has reportedly rejected a revised $8 million offer, the amount she originally sought in damages from the retailer, to settle her sexual harassment case against Australian department store David Jones Ltd.

Insiders within David Jones said the new offer was made to settle ahead of this week's conciliation talks before she left for a holiday in the Hamptons, New York, the cost of which she has included on a list of expenses which she said were necessary to avoid media attention in Sydney.

David Jones, however, denied making such offer. Any new offers from the company would be placed on Friday, during which the matter goes into the Human Rights Commission, according to its spokeswoman Helen Karlis.

Ms Fraser-Kirk remains on David Jones payroll despite suing David Jones, its former chief executive Mark McInnes and nine directors in the biggest sexual harassment case in Australia's history. Her legal team, Harmers, filed for a punitive claim of $37million.

The company and Mr McInnes have strongly denied her allegations, including that the department store allowed some sexual advances by company officers.

Shares in David Jones closed 1.24 per cent higher at $4.87 versus a flat benchmark index.