Lord McAlpine said:
I am delighted to have reached a quick and early settlement with the BBC.
I have been conscious that any settlement will be paid by the licence fee-payers, and have taken that into account in reaching agreement with the BBC.
We will now be continuing to seek settlements from other organisations that have published defamatory remarks and individuals who have used Twitter to defame me.
A BBC Spokesman said:
The BBC has agreed terms with Lord McAlpine to settle his claim of libel against the Corporation.
The settlement is comprehensive and reflects the gravity of the allegations that were wrongly made.
Lord McAlpine is to say that he still holds the BBC in high esteem, despite the false claims made by Newsnight.
Lord McAlpine has reached a settlement worth £185,000 (plus costs) with the BBC over false claims made in a Newsnight report, the corporation and lawyers for the peer confirmed tonight.
ITV's Director of Television Peter Fincham says he has received a legal letter from Lord McAlpine and will respond very quickly.
In his interview with BBC Radio 4's World at One, Lord McAlpine said the events which led to him being wrongly linked to a child sex abuse scandal were 'beyond his comprehension'.
Pictures from BBC Radio 4
Phillip Schofield plus some of the This Morning production staff have been disciplined. However he is due to appear on the show today.
– BBC spokesman
The BBC is hopeful that it can agree a settlement with Lord McAlpine today.
ITV released a statement today after finishing its investigation into This Morning. It came after presenter Phillip Schofield handed the Prime Minister a list of alleged paedophiles he had found online.
– ITV STATEMENT
Last Thursday we began an investigation into the circumstances surrounding the mistake on that day's This Morning programme, for which both Phillip Schofield and ITV apologised. This investigation has now concluded and the appropriate disciplinary action has been taken. We sincerely apologise because the way in which the issue was raised was clearly wrong and should have been handled differently. We have taken steps to make sure our editorial processes are always properly followed, which was not the case in this instance, and to ensure such an error will not be made again.
Lord McAlpine's solicitor, Andrew Reid, told Radio 4 he was hoping to agree a settlement with the BBC today:
Lord McAlpine is more than aware that the ultimate people who will paying for any monies that he may receive are in fact the licence payers, the people who really own the BBC, and he is very much aware of this and hence any agreement that is reached is tempered in the light of that.