Mr Best, formerly of Manchester United and Northern Ireland, was not present in court for the hearing.
His counsel, Jonathan Crystal, told Mr Justice French that the allegation in the October 1991 issue of a football monthly entitled Star Kicks was wholly without foundation.
'Mr Best has never taken drugs or participated in wild orgies involving drugs,' he said.
Thomas Shields, counsel for Lancastrian Holdings, publishers of the magazine which has now ceased publication, said that the company very much regretted that the article, which bore the headline 'Simply the Best]', had caused any offence or embarrassment.
It had agreed to pay Mr Best a 'suitable' sum in damages as well as his legal costs.Reuse content