The 'Titanic' star sued the Daily Mail following the publication of a report in January which branded her vain and accused her of lying about her fitness regime, People magazine online reported.

Winslet claimed the piece, entitled 'Should Kate Winslet Win an Oscar for the World's Most Irritating Actress?', "injured her personal and professional reputation" and left her feeling "distressed and embarrassed".

The story came just three weeks before her Best Actress Oscar win for 'The Reader'.

The star's attorneys agreed to settle the matter with USD 40,000 in libel damages in a hearing at London's High Court on Tuesday.

"I strongly believe that women should be encouraged to accept themselves as they are, so to suggest that I was lying was an unacceptable accusation of hypocrisy," Winslet said in a statement.

"I was particularly upset to be accused of lying about my exercise regime, and felt that I had a responsibility to request an apology in order to demonstrate my commitment to the views that I have always expressed about body issues, including diet and exercise," the actress said.