Katie Price have been forced to pay her former manager Claire Powell ‘substantial damages’ after claiming that she slept with Peter Andre.

Powell took legal action against Price after she made the comments on an unaired portion of The Graham Norton Show last October, Sky News reports.

Powell’s solicitor Mike Brookes said: “To be accused of infidelity, with one of her longstanding and high-profile clients, was obviously very damaging and distressing for Ms Powell – the most obvious reason being that the allegation was completely untrue.”

Price’s lawyer Keith Ashby added: “She greatly regrets what has happened, and joins in the making of this statement in order to assist in setting the record straight.”

He then added that Price had agreed to pay “substantial compensation” in addition to Powell’s legal costs.

Speaking to reporters outside the court, Powell said: “I’m just glad it’s been sorted. I didn’t really want to be in court but if something bad is said which is going to trash your reputation, you have to clear your name.”