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, his lawyers have confirmed.

The terms of the agreement will be announced in court in a few days' time, according to RMPI LLP, the solicitors to the former Conservative Party treasurer.

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."

A BBC spokesman said: "The BBC has agreed terms with Lord McAlpine to settle his claim of libel against the Corporation.

"The settlement is comprehensive and reflects the gravity of the allegations that were wrongly made."