A Guardian columnist will carry out charity work to the value of £25,000 in an "unprecedented" settlement, after wrongly naming Lord McAlpine as a paedophile on Twitter.
Journalist George Monbiot announced on his website that the "remarkable and eminently decent settlement" was agreed with the former Conservative politician's legal team.
Mr Monbiot wrote, "They would like me to carry out, over the next three years, work on behalf of three charities of my choice whose value amounts to £25,000".
"I accepted the suggestion immediately and without reservation. I feel the proposed settlement reflects very well on Lord McAlpine, who is seeking nothing for himself, but wants to see work done which could be of great benefit to others", he added.
A spokesman for Lord McAlpine said the peer welcomes Mr Monbiot's statement and settlement and is "pleased to have reached a settlement whereby a number of charities will benefit from these defamatory actions".
"This is a ground-breaking settlement which underlines the danger of the misuse of the internet", the spokesman added.