The actor, a strident critic of Britain's tabloid newspaper culture, will donate the money to 'Hacked Off', a pressure group that helped bring about a public inquiry into press practices.

"Hugh Grant has today settled his claims for damages and other legal remedies arising out of the unlawful activities of News of the World journalists and others over a number of years," the actor's lawyer said in a statement.

Grant, who gave evidence to the Leveson inquiry into British press conduct in November 2011, was one of several high-profile figures who launched legal action against the British arm of Rupert Murdoch's News Corp.

"Settled hacking suit with NI (News International). 100 % of money plus more goes to #HackedOff coffers. Just in time for Christmas, Rupert," Grant tweeted on Friday.

(Reporting By Alessandra Prentice; Editing by Sophie Hares)

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