Phone hacking: Sienna Miller accepts £100,000 from News of the World

The unexpected agreement came midway through a high court battle with the paper. The actor is the first celebrity to settle a claim since the tabloid, part of Rupert Murdoch's News Group Newspapers (NGN), last month admitted hacking the phones of several public figures. The settlement is the highest privacy award to date; NGN will also pay Miller's legal costs.

Michael Silverleaf QC, NGN's barrister, had previously claimed Miller's case could result in £400,000 in damages. He told the court this would be a "ludicrous" sum.

Separately, it emerged that James Hewitt, the man who became famous for his affair with Princess Diana, is poised to sue for invasion of privacy. He will issue proceedings next week after the Metropolitan police showed him evidence that suggested he may have been targeted by Glenn Mulcaire, the private investigator who was jailed for phone hacking in 2007.

Hewitt's lawyer, Charlotte Harris of Mishcon de Reya, confirmed that her client is to begin action against the paper: "He's had his meeting with the police, we're satisfied he has a strong case and we will be issuing legal proceedings next week."

Max Clifford has claimed Koo Stark, a former girlfriend of Prince Andrew, is also poised to sue a tabloid over phone-hacking, although it is unclear which title he was referring to. Her lawyer, Andrew Veen, said he could not comment at this stage.