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TV presenter Charlotte Dawson, who alleged she was defamed by a magazine story published in Australia, has settled out of court for $253,000.

Lawyers for Dawson sued ACP Publishing over a Woman's Day article which exposed the private details of her divorce from former Olympic swimmer Scott Miller, reports ABC NewsOnline.

Dawson, who has a Prime TV show called Charlotte's Lists, was a columnist for Woman's Day but took up a position with New Idea before the article was written.

In 2003, a Supreme Court jury found her reputation was greatly injured by the story, which implied she had emotionally abused her husband and undermined his chances as an athlete.

Her barrister, Tom Molomby, said $253,000 was a substantial amount but he would also be seeking a judgment against ACP Publishing.

ACP's lawyers had defended the article by suggesting it portrayed her as "a fruit loop who goes over the top and can't control herself".

Dawson says anti-depressants helped her regain her emotional strength after the article, which caused her magazine work and all but one television spot to dry up in Australia, leaving her in debt.

"I slugged it out for about a year but it didn't get better. The story was untrue and unjust but people believed it and not me. I lost employment and plunged into depression."