A former lord mayor of Dublin, Ms Mary Freehill, has settled her action for libel against the Star newspaper on terms including an apology from the newspaper.
Ms Freehill took the case in response to an article which suggested she had used an obscenity when describing the media.
It is understood Ms Freehill is also to receive a payment from the newspaper.
The action was due to open yesterday before Mr Justice Quirke and a jury, but the court was told the action had been settled.
In an apology read to the court by Mr Hugh Mohan SC, for the defence, it was stated that on April 15th, 2000, the Star had published an article headed "Four-letter blast from Lord Mayor", which suggested that Ms Freehill had used an obscenity in relation to the media.
The apology continued: "It went on to suggest that she claimed a meeting which she had had with a Garvaghy Road resident was a 'set-up' and that she had referred to a resident in question, a young woman, as 'that Northern girl'. We now wish to acknowledge that all these suggestions were completely untrue and we regret greatly the fact that they were published.
"We wish to acknowledge the distinguished contribution which Ms Freehill has made to Irish public life and that she has, at all times, and particularly as Lord Mayor of Dublin, behaved with the dignity and propriety appropriate to her office.
"We wish to take this opportunity to apologise sincerely for the hurt and distress which our article has caused her."
The article had stated that Ms Freehill used the words complained of as she emerged from a meeting in Monaghan. She was there for the annual meeting of the General Council of County Councils.
The action had opened on Tuesday before Mr Justice Quirke and another jury, but shortly after it opened the jury was discharged because of what the judge said was "a slight technical glitch". He adjourned the case until yesterday for hearing before a new jury.
Mr Paul O'Higgins SC, for Ms Freehill, told Tuesday's hearing that Ms Freehill was born in Co Cavan. When she was 13, her father died and the family moved to Dublin. She joined the Labour Party in 1969. She became lord mayor of Dublin in 1999, one of only four women to have held that post in 800 years.