Ashley Cole, the Arsenal and England footballer, has accepted "very substantial" libel damages over an allegation that he took part in a sex orgy together with a radio presenter.

Mr Cole, and Ian Thompson, a DJ on Choice FM, both sued The Sun and The News of The World over articles published in February alleging that two unnamed footballers and a music industry figure took part in orgies "involving obscene sex acts, in which a mobile phone was used as a sex toy."

Korieh Duodu of David Price Solicitors and Advocates, Mr Thompson’s solicitor, told Mr Justice Tugendhat that although Mr Thompson was not named in the articles, the News of the World article of February 19 was accompanied by a crudely pixellated photograph of himself and Mr Cole.

As a result of this and other aspects of the articles in both newspapers, many readers were able to recognise Mr Cole and Mr Thompson as being the subject of the allegations which Mr Duodu said were false.

He said Mr Thompson had never been involved in such activities and was extremely hurt and upset by the articles.

Graham Shear, of Teacher Stern Selby, also denied the allegations on behalf of his client Mr Cole.

The allegations received widespread coverage across the media and were repeated on a number of websites and discussion forums.

Mr Duodu said that on April 21, News Group Newspapers made an offer of amends to both Mr Thompson and Mr Cole. They agreed to apologise for the allegations, undertook not to republish them, and promised to withdraw the articles from their websites and pay both men substantial sums in compensation, together with their legal costs.

Solicitors for both men declined to comment on the level of damages.

The company also published apologies to Mr Thompson and Cole in yesterday’s News of the World and today’s Sun.

Sarah Webb, a defamation lawyer at Russell, Jones & Walker. said: "Ashley Cole's success emphasises the dangers of newspapers trying to escape liability for a defamatory article by not naming someone. These days instant access to information on the internet all too easily completes the 'jigsaw' of identity, particularly where a photograph is used. Publication on the internet would not give rise to a claim against those who do complete the identity unless they also repeat the defamatory allegation. Newspapers will now have to take heed that the world wide web also provides a worldwide library."

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