TORONTO - Motorists who regularly drive on Highway 407 will soon be able to participate in a loyalty program to be announced this week that the toll road's operators say could save as much as $40 million in toll costs over the next four years.

The program is part of a deal with the Ontario government reached last March that settled a nasty legal dispute over rising toll levels, The Canadian Press has learned.

Dale Albers, a spokesman for 407 ETR, the company that runs the highway, confirmed the program was in the works but refused to discuss details.

"It's true that we're making final preparations to launch a rewards program on Thursday,'' Albers said.

"While I can't share any details right now, I can tell you that customers will save money both on and off the highway.''

A source close to the project said the level of "rewards'' will depend on how much driving a motorist does, but refused to say what the minimum amount required to qualify would be.

However, heavy users of the highway -- those who drive more than 1,500 kilometres a month -- will be able to use the road for free on weekends, the source said.

In addition, drivers will also receive special cards entitling them to a discount of up to nine cents a litre on gasoline.

Overall, the most frequent customers could see immediate savings of between 10 and 15 per cent of their monthly bill, the source said.

The company has already begun notifying about 100,000 customers that they are immediately entitled to free kilometres and instant gas savings based on their usage over the past six months.

The company will review the number of kilometres driven semi-annually and base the rewards on the previous six months' usage.

The source said 407 ETR expects to give away 40 million weekend kilometres in the first year of the program.

"There will be an audit done at the end to ensure that $40 million of benefits have been received by users,'' the source said.

The legal settlement ended a series of bitter disputes with the province, which accused 407 ETR of raising its tolls illegally.

To comply with the settlement, the company lowered some fees last year.

It also slashed toll charges by as much as half for commercial truckers who use the road at off-peak times.

The 108-kilometre east-west highway parallels highway 401 north of Toronto.

In 1999, the former Conservative government under then-premier Mike Harris signed a 99-year lease to the private consortium to operate the highway, which was designed to bleed traffic from a badly congested Highway 401.

However, tolls soared and both the company and province were inundated with complaints about poor customer service, incorrect billing, and heavy-handed collection tactics.

The Liberal government, under Premier Dalton McGuinty, sued after claiming the toll hikes were in breach of the contract.