Peter Andre has accepted substantial undisclosed libel damages over a claim that he made inappropriate sexual advances to a Jordan lookalike while still with wife Katie Price.
The 36-year-old singer was at London's High Court for the settlement of his action over a story which appeared in The People in May.
His solicitor, Mike Brookes, told Mr Justice Eady: "These allegations were very upsetting and offensive to Mr Andre, as they are untrue."
He added that MGN Ltd had apologised and agreed to pay Mr Andre damages and his legal costs.
Afterwards, Mr Andre said: "This story has led to a lot of speculation about whether I was faithful to my estranged wife, which even led her to mention it on a breakfast television show last week.
"I have never been unfaithful to my wife, not with this girl or with anyone else.
"I'm pleased that the Sunday People have now accepted that their story was untrue and hurtful to myself.
"I also need to add that if anyone slanders my name, I will not hesitate in taking action against them.
"Now hopefully this will bring these rumours and lies to an end and let me move on with my life."
He added: "When things are untrue, I have to take action. I've not only got an estranged wife, I've got kids as well."
