Express Newspapers has "apologised unreservedly" and paid damages to Mike Tindall, husband of the Queen's granddaughter Zara Phillips.
Tindall sued because the Sunday Express falsely reported rumours in February 2013 about his marriage to Phillips, the daughter of Princess Anne.
Court hearings were due to begin next month but the newspaper group retched an out-of-court settlement with the former England rugby player.
A spokesman for Tindall said he would donate the money to charity. Express Newspapers is also paying Tindall's legal costs.
He said: "The legal action was bought as a matter of principle to protect intrusion of privacy and on the basis of merely 'rumours' being falsely reported... These rumours caused considerable distress."
An apology is expected to be published in tomorrow's Sunday Express and on its website.
Source: Frequency Media
