Peter Andre accepted substantial undisclosed libel damages today over a claim that he made inappropriate sexual advances to a Jordan lookalike while still with wife Katie Price.
The 36-year-old singer was at London's High Court for the settlement of his action over a story which appeared in The People in May.
His solicitor, Mike Brookes, told Mr Justice Eady: "These allegations were very upsetting and offensive to Mr Andre, as they are untrue."
He added that MGN Ltd had apologised and agreed to pay Mr Andre damages and his legal costs.
Afterwards, Mr Andre said: "This story has led to a lot of speculation about whether I was faithful to my estranged wife, which even led her to mention it on a breakfast television show last week.
"I have never been unfaithful to my wife, not with this girl or with anyone else.
"I'm pleased that the Sunday People have now accepted that their story was untrue and hurtful to myself.
"I also need to add that if anyone slanders my name, I will not hesitate in taking action against them.
"Now hopefully this will bring these rumours and lies to an end and let me move on with my life."
He added: "When things are untrue, I have to take action. I've not only got an estranged wife, I've got kids as well."
Mr Brookes told the court that the article was said to represent an account of a brief meeting between Mr Andre and Shira Jones at the Movida club in London last December, while he was still together with Ms Price.
In particular, it alleged that he made inappropriate sexual advances to Ms Jones shortly after meeting her.
The solicitor said all that happened was that Mr Andre was introduced to Ms Jones, allowed her friend to photograph them together and then spoke to her very briefly.
MGN now accepted that the allegations were untrue and Mr Andre did not in any way behave inappropriately when he met Ms Jones.
Its solicitor, Sarah Toolan, said: "The defendant wishes to apologise to Mr Andre and is joining in the making of this statement in the hope that it will assist in setting the record straight."