(Adds details, company comments) NEW YORK, Nov 21 (Reuters) - Big Lots Inc <BIG.N>, Michaels Stores and some other retailers agreed to stop sales of children's jewelry found to contain dangerous levels of lead as part of settlements with New York, the state's attorney general said on Wednesday. The settlements come after an investigation found high levels of lead in children's jewelry, New York Attorney General Andrew Cuomo's office said. The settlements also include agreements with Internet distributors and a national supplier to craft stores, the attorney general's office said. A national recall of lead-contaminated children's jewelry based on Cuomo's investigation is also being announced on Wednesday by the U.S. Consumer Product Safety Commission, Cuomo's office said. Over the last two years, the CPSC has recalled over 150 million items of children's jewelry because of lead content, Cuomo's office said. Lead is toxic and can pose serious health risks to children, including brain damage. Recalls involving millions of mostly Chinese-made toys, the majority over lead in their paint, have alarmed American consumers in recent months. Cuomo's office performed lead tests on children's jewelry bought from a variety of businesses in Albany, Buffalo, Syracuse, Long Island and New York City areas. About half of the items tested had excessive amounts of lead with some containing more than a thousand times the level identified by the CPSC as safe, Cuomo's office said. The settlements with Big Lots and other retailers are binding, with any violations resulting in automatic penalties, it said. Representatives for Big Lots and Michaels Stores could not be reached immediately for comment. (Reporting by Paritosh Bansal, editing by Gerald E. McCormick and Dave Zimmerman)