Colin Craig says he has received an apology from the Taxpayers' Union executive director Jordan Williams over false allegations.

He says Williams has admitted making false allegations, unreservedly apologised to him and his family and made a payment.

Craig, a former leader of the Conservative Party, released the full apology and details of a payment made to him via a media statement this morning.

A screenshot of a typed apology shows the executive director of the Taxpayers' Union, apologising for his "untrue statements'' made against Craig.

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"I wish to apologise publicly for the untrue statements I have made about Mr Craig."

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"In late 2014, Ms [Rachel] MacGregor - Mr Craig's former press secretary - approached me making various allegations about Mr Craig,'' he wrote.

"Some of the allegations were serious and I decided to pass these allegations on to others within the Conservative Party and ultimately to Whale Oil."

"I am now aware that a number of statements I made to others about Mr Craig were not true."

Exactly how much was paid by Williams to Craig has not been revealed in the statement.

Williams said he deeply regretted what had happened; as well as his involvement in spreading those allegations.

"I apologise to Mr Craig and his family unreservedly."

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Williams said he would not be continuing his legal proceedings against Craig.

He said he had personally apologised to Craig and had agreed to make a payment to him - which Craig had accepted.

"He has accepted my apology and so has agreed to end his legal proceedings against me."

Craig said he was happy that the matter had been brought to a conclusion; saying that it now allowed both parties to move on.