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 will receive a payment of £185,000 after a settlement was reached with the BBC over false claims made in a Newsnight report.
George Entwistle will receive a 12-month salary after stepping down from the BBC, he is also reported to be entitled to his full pension.
BBC director general George Entwistle has fallen on his sword following the Newsnight child abuse scandal.