Ian Paisley is to make a donation to a cancer charity as part of a settlement reached in defamation proceedings brought by Sinn Fein MEP Martina Anderson.
Ms Anderson sued the DUP MP for libel over comments made in a radio interview about the closure of the Gallaher's cigarette factory in his North Antrim constituency.
The action would have been heard by a judge and jury at the High Court in Belfast if it had gone to trial.
But Mr Justice Stephens was told today the claim has now been settled. Neither Mr Paisley nor Ms Anderson were present in court.
The Sinn Fein MEP issued proceedings against the DUP MP after they were interviewed together last October.
At the time it had just been announced that Gallaher's plant in Ballymena was to shut down, with the loss of nearly 900 jobs.
Although no further details of the case were disclosed in court, Ms Anderson's solicitor confirmed details of the resolution reached.
Padraig O Muirigh said: "The claim was settled in Martina Anderson's favour.
"Costs are being paid by the defendant to include a payment to the Pink Ladies cancer charity in Derry."