Mr O'Neill was "distressed" over the allegations
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Celtic manager Martin O'Neill has won "substantial" undisclosed libel damages over a newspaper report that he was leaving the club to join Liverpool FC.
It is the second time the football boss has successfully sued over false rumours about his future.
This latest libel case was brought after a Daily Record article which was published on 7 February last year.
Publishers, the Scottish Daily Record and Sunday Mail Limited, accepted the claims were "without foundation".
Mr O'Neill's solicitor, Paul Hackney, told Mr Justice Eady at London's High Court that
the paper's piece questioned his client's loyalty and commitment to Celtic and his integrity.
The article alleged that the Scottish club manager had signed a legal document to join Liverpool and that agreement had been reached with the Premiership club before he announced his new contract with Celtic.
'Let the matter rest'
Mr Hackney said: "These allegations which questioned his loyalty and commitment to Celtic and integrity were republished widely through the print and broadcast media and have caused Mr O'Neill to issue further denials in the media that evening and in the following weeks.
"These allegations have caused great distress and anxiety to Mr O'Neill".
The court was told that the Daily Record accepted that the story should never have been published.
Mr O'Neill was "pleased to accept" the newspaper's offer of an "unqualified apology" and "a substantial sum in damages" to settle his libel action, Mr Hackney added.
The Celtic manager considered he had been "properly vindicated" and was now "content to let the matter rest", he concluded.
In December 2001, Mr O'Neill won "substantial" but undisclosed libel damages from The Observer newspaper which had alleged that he was set to leave the club for Manchester United.
Its article alleged that Mr O'Neill had held secret talks with Manchester United and reached an informal agreement about taking over from current boss, Sir Alex Ferguson.