Lord Archer has settled his libel case debt with the Daily Star. Express Newspapers says he has repaid the original sum and the majority of the substantial legal recovery costs.
The disgraced peer was awarded £500,000 in 1987 following a libel action against the Daily Star, which claimed Archer had sex with prostitute Monica Coghlan.
Archer is now in Lincoln jail serving a four-year sentence for perjury.
A spokesman for the newspaper group said: "We are satisfied with this outcome."
A statement issued by Express Newspapers said: "Archer was awarded £500,000 in 1987 following a libel action against the Daily Star, which claimed Archer had sex with prostitute Monica Coghlan.
"Archer, now in Lincoln Jail serving a four-year sentence for perjury, has repaid the newspaper the original sum, plus the majority of the substantial legal recovery costs.
"The 1987 judgment against the Daily Star, and its then Editor Lloyd Turner, has been set aside by the courts as it was obtained by fraud."
PA