Paparazzi agency Big Pictures has agreed to pay acress Sienna Miller £37,000 in damages plus legal costs after being accused of subjecting her to a "campaign of harassment".
The agency has also agreed to pay her £16,000 damages for breach of privacy over photos taken showing her frolicking topless in the sea with Balthazar Getty.
The High Court heard that Miller has reached a seperate settlement with the News of the World over the topless pictures.
At a preliminary hearing at the High Court last month Mr Justice Eady was told that the star has been caused "substantial alarm, fear and enormous distress" by the conduct of photographers.
A trial to decide whether the agency had breached Miller's privacy and subjected her to harassment was due to start on 12 January.
Miller complained of being "pursued in a dangerous manner all the way from Stroud to Heathrow" on September 7, which she found "very frightening".
Today Miller reached a settlement with Big Pictures and its proprietor Darryn Lyons. In addition to the cash settlement, Big Pictures has undertaken not to follow Miller or to doorstep her.