The Ministry of Defence has agreed to pay almost £3 million to the family of an Iraqi who died while being detained by UK troops and nine other men who were allegedly mistreated, their solicitors said.
The family of Baha Mousa and the nine other men will share £2.83 million in compensation from the MoD, law firm Leigh Day & Co said.
Mr Mousa, a 26-year-old hotel receptionist, died while he was being detained by soldiers from the 1st Battalion The Queen's Lancashire Regiment in Basra in 2003.
Mr Mousa sustained 93 separate injuries, including fractured ribs and a broken nose.
During the mediation session General Freddie Viggers also apologised to the families for "the appalling behaviour of British soldiers" which had left the Army "disgusted", the law firm said in a statement.
It read: "Settlement has been reached this afternoon (Thursday) for the sum of £2.83 million in relation to the Iraqi claims by the family of Baha Mousa who was murdered by British troops in September 2003 in Basra and in relation to the torture and abuse of nine other Iraqis.
"The mediation has taken place yesterday and today overseen by Lord Woolf, the former Lord Chief Justice.
"The compensation is for the children of Baha Mousa and the pain and suffering suffered by the men at the hands of the British Army.
"During the mediation an apology was given by General Viggers where he said 'the British Army apologise for the appalling treatment that you suffered at the hands of the British Army. The appalling behaviour of British soldiers made us feel disgusted'."
Martyn Day, the senior partner at Leigh Day who represented the Musa family and the other claimants, said: "We are very pleased that we have been able to reach this settlement."
