Muar MP Syed Saddiq Syed Abdul Rahman with his lawyers (from left) Joshua Wu, Lim Wei Jiet and Nevyn Vinosh Venudran after today's proceedings.PUTRAJAYA: Muar MP Syed Saddiq Syed Abdul Rahman's legal challenge against the government's withdrawal of constituency funds from elected representatives has been adjourned to allow parties to explore an amicable settlement.

Senior federal counsel Ahmad Hanir Hambaly told a three-member Federal Court bench he had received instructions from Attorney-General Dusuki Mokhtar to put the proceedings on hold pending efforts to resolve the dispute out of court.

"Parties need time to work on the mechanism for the settlement," he said.

Chief Judge of Sabah and Sarawak Azizah Nawawi, who chaired the bench, fixed Dec 7 for parties to update the court on the progress of the proposed settlement.