Rooney's autobiography was published in 2006
Everton manager David Moyes has accepted substantial libel damages over claims made in Wayne Rooney's autobiography "My Story So Far".
The writ had claimed the publication "injured his professional and personal reputation" and caused him distress.
Moyes had objected to the account of how Rooney came to leave Everton and sign for Manchester United.
Speaking after the hearing Mr Moyes said he was glad that his name "had been fully cleared in this matter".
Ian Monk, spokesman for Wayne Rooney, said that all the costs and damages were being paid by the publishers HarperCollins.
Solicitor Edward Parladorio, for Moyes, told Mr Justice Eady, sitting at the High Court, that in the book his client was accused of "a serious breach of trust towards a young player under his management".
He said Moyes was accused of leaking a private and confidential conversation about the star's intention to leave Everton to a local newspaper, the Liverpool Echo.
Mr Parladorio told the court that the allegation was "wholly untrue".
"Mr Moyes was not the source, direct or indirect, of anything in the article," Mr Parladorio said.
"There was no breach of confidence or betrayal of trust by Mr Moyes."
Sarah Toolan, solicitor for the defendants, said her clients accepted the allegation was untrue and "sincerely apologised to Mr Moyes for the distress and embarrassment caused".
'No ill feeling'
After the hearing, Mr Moyes released a statement which said: "Anyone who knows me well would, I hope, regard me as a man of honour and integrity.
"I was disappointed and wanted people to know that what had been written was completely untrue.
"I felt that I had no choice but to take action for a full apology and damages."
Mr Moyes said he would be donating the money to the Everton Former Players Foundation, but said he bore his former player no ill feeling.
He added: "All of the above said, we have now moved on and I wish Wayne and his family all the best for the future both on the field and off it."
It is understood to have been the first time that a Premiership manager has sued one of his former players for libel.
Mr Monk said: "All costs and damages in this case are being met by the publishers, HarperCollins, who have acknowledged that their libel proof-reading of the passage complained of did not meet their usual standards."
Rooney, 22, was the world's most expensive teenager when he joined Manchester United in September 2004 for an initial fee of £20m.
His autobiography was published in August 2006.