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.
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.