The British newspaper claimed Materazzi had racially abused Zidane during the 2006 World Cup final in Berlin when the Frenchman head-butted the Italian and was sent off. Italy won the final on penalties following a 1-1 draw after extra time in which Materazzi scored their equaliser.

Inter Milan central defender Materazzi, who sued the Star's publishers Express Newspapers over a series of articles, will receive "substantial damages and his legal costs" from the paper, his lawyer Steven Heffer said.

The player's counsel Jane Phillips told a hearing: "In (post-match) articles the defendant (Daily Star) stated, quite wrongly, that the claimant (Materazzi) had used vile racist abuse during the World Cup final, including calling the mother of his opponent, Zinedine Zidane, a 'terrorist whore', thus goading Zidane into losing his temper and causing Zidane to head-butt the claimant.

"The defendant accepts these allegations are wholly untrue and that there is no question of the claimant having said anything of a racist nature to Zidane whatsoever."

Kate Wilson, for Express Newspapers, said: "The defendant would like to take this opportunity to apologize to the claimant for any distress and embarrassment which he has suffered as a result of the publication of these articles."