Charlotte Church has accepted substantial undisclosed libel damages from The People newspaper.
Last November the Sunday tabloid claimed that the 25-year-old had proposed to her boyfriend Jonathan Powell during a drunken session of pub karaoke in Cardiff.
However, the couple had actually been giving a live concert five miles away at the Acapella Studio in Pentrych.
Charlotte called the story a 'complete fabrication' at the time and attacked the tabloid industry as being 'out of control'.
Shortly after it was published she said: 'I have not proposed to my boyfriend, drunkenly or otherwise.
'It is embarrassing for me (and him) for our families and friends to read that I have,' before adding that there was not 'one shred of truth' in the report.
'This is not journalism. It's a perfect example of why this out of control tabloid industry needs regulation immediately,' Charlotte went on to say.
The singer and TV presenter has been a key voice in the recent uproar over press intrusion.
As well as accepting this week's damages she recently settled another claim against News Group Newspapers after reporters hacked her mobile phone at the beginning of her career when she was only 16 years old.
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