But Ms Hood said that a second article, written by Dan Hodges, was published in October that “falsely alleged that Mr Vince had supported or defended the terrorist acts of Hamas”.

She said the publication of that article caused Mr Vince significant distress, because he reasonably expected a national newspaper to comply with its undertaking.

Lizzie Greene, for ANL, said the publication of the article was “an error which should not have happened”.

“The defendant acknowledges that the allegation made in Mr Hodges’ article about Mr Vince is untrue and that Mr Vince does not support Hamas in any way.

“We formally retract and withdraw the allegation.”

Ms Hood said that Mr Vince, who founded Stroud-based green energy company Ecotricity, and who is also the co-owner of National League football team Forest Green Rovers, intended to also donate the latest awarded damages to charity.

Following the hearing, Mr Vince said ANL “broke a promise not to repeat a false allegation”.

He said: “Their cash is on the way to Gaza again. People that support Palestinian rights are not terrorists and free speech is not the freedom to be dishonest.”

A settlement occurs in High Court libel cases when both parties reach an agreement before the court delivers a final judgement.

Under the terms of the settlement, ANL will also pay £30,000 of Mr Vince’s legal costs and will publish an apology online and in The Mail on Sunday within 14 days.