The Oscar-winning actress accepted damages from the Daily Telegraph newspaper Friday for falsely reporting she had breached the terms of her promotional contract for Chanel No. 5.
The newspaper's "Spy" column reported last month that Kidman carried a bottle of a competitor's perfume while she was in London to promote her new film, "The Golden Compass."
Kidman lawyer John Kelly said the paper determined the source of the report had lied.
Details of the settlement weren't disclosed, and the 40-year-old actress wasn't in court. Kelly said the newspaper agreed to pay Kidman's legal costs and "substantial" damages. Kidman will donate the damages to the United Nations Development Fund for Women, he said.
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