It said the files were at an “advanced stage” and a decision was expected in the coming weeks.
The Irish Times reports solicitor firm Madden and Finucane has submitted “detailed legal submission” on behalf of the families of those killed in January 1972.
They have appealed to prosecutors to reconsider a decision not to prosecute nine soldiers.
They also ask if Soldier F – who is facing charges of murder and attempted murder should face trial for further offences.
The PPS said it was reviewing decisions not to prosecute a number of suspects, “as requested by a number of victims and families of deceased persons involved”.
In March the PPS decided there was not enough evidence to prosecute sixteen veterans and two ex-members of the Official IRA.
Soldier F, however, will face prosecution for the murders of James Wray and William McKinney and the attempted murders of Joseph Friel, Michael Quinn, Joe Mahon and Patrick O’Donnell.
His case is due back at Derry courthouse next week.
At the time PPS said that it recognised the “deep disappointment” felt by many families at the decision.
“In respect of the other 18 suspects, including 16 former soldiers and two alleged Official IRA members, it has been concluded that the available evidence is insufficient to provide a reasonable prospect of conviction,” PPS Director Stephen Herron said.
Thirteen civil rights demonstrators were shot dead on January 30 1972, on one of the most notorious days of the Northern Ireland Troubles.
A 14th died later.
The landmark Saville Inquiry concluded in 2010 that all those killed or injured were innocent.
In its submission to the PPS, Madden and Finucane argued the organisation “erred” in failing to prosecute and in law and asked for further charges to be brought against the former soldiers. It argued that while statements made to Saville were inadmissable, there was other evidence that could be used as evidence.
The PPS has said that in regard to the soldiers’ own accounts and how they were made, it would be an unlikely they would form part of court proceedings – something Madden and Finucane argued was flawed.
A PPS spokesperson said: “The files relating to Bloody Sunday remain under consideration by the Public Prosecution Service and are at an advanced stage.
“Senior Counsel has been instructed to advise on a number of issues in the case and we are expecting receipt of this advice in the coming weeks.
“As indicated at the outset of the PPS’s consideration of these files, the volume of material and complexity of legal issues involved have made it difficult to provide a definitive time-frame for decision.
“We have remained in regular contact with the victims and families to advise on the progress of the case to date and we intend to update them again as soon as counsel’s advice has been received.”
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