Katie Price pays out for 'Andre affair' slander

Katie Price's former manager accepted "substantial" undisclosed damages from the reality star today over a slanderous claim that she had an affair with Peter Andre.

Claire Powell, whose company Can Associates Limited still represents Andre, who was divorced from Price last October, sued over a comment made on The Graham Norton Show that month.

Her solicitor, Mike Brookes, said Price told Norton, fellow guests Jackie Collins and Jo Brand, and a studio audience of 600 that Ms Powell and Andre had had an affair, even though Ms Powell was engaged to Neville Hendricks, the father of her child.

Mr Brookes told Mr Justice Eady at London's High Court that the BBC "quite sensibly" edited the accusation from the broadcast but the story was quickly picked up by various tabloid newspapers.

"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."

He said Price, who was not in court, accepted that the allegation was completely untrue, apologised unreservedly and had agreed to pay substantial compensation and Ms Powell's legal fees.