Big Brother 6 contestant Makosi Musambasi has settled a libel action against The Sun, which falsely claimed she conned her way onto the TV show.
Ms Musambasi raised eyebrows with her on-screen antics
Ms Musambasi sued the newspaper after it claimed she was an actress who was fast-tracked into the Channel 4 house.
But her solicitor David Price told London's High Court she went through the usual audition process and the newspaper now recognised that.
It is understood she has received undisclosed damages from The Sun.
But details of the settlement were not given in court.
The article, which was published in August 2005, while Ms Musambasi was still in the Big Brother house, mentioned an invoice for a video allegedly made for her by a talent agency.
But Mr Price told the High Court the invoice was not connected to Ms Musambasi, who eventually came third in the show.
She said she was hurt and embarrassed by the article and complained to the newspaper, which made an offer of amends and agreed to the amicable settlement of the claim.
Ms Musambasi had been threatened with deportation to her native Zimbabwe after resigning her nursing job to go on Big Brother.
But an appeal decided her high profile made her a target if she returned.