The former England rugby player Mike Tindall has agreed a settlement with Express Newspapers over a story about his marriage to Zara Phillips.
Tindall sued after the Sunday Express falsely reported rumours last February about his marriage to the Queen's granddaughter, his spokesman said.
Hearings were to begin next month but the newspaper group has "apologised unreservedly" and will make a payment.
The spokesman for Tindall said he would donate the money to charity.
The newspaper group is also paying Tindall's legal costs.
The spokesman said: "We are delighted that the matter has been settled to Mike Tindall's satisfaction.
"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 by Express Newspapers.
"These rumours caused considerable distress."
An apology is expected to be published in print and online this weekend.