A source tells BBC News that the legal fees are estimated to be £10 million for both sides in total, and News Group Newspapers is expected to pay Prince Harry and Tom Watson's legal fees.

BBC News has contacted both sides for further details of the financial settlement. We're still waiting to learn more about the total costs and damages.

Imogen James
Reporting from the High Court

A common theme in these trials against news giants has been settlements. We know that there are "substantial damages" in this case, but we don't know how much.

News Group Newspapers alone has settled with more than 1,300 claimants and spent upwards of £1bn in pay outs.

And in doing so, they have never admitted liability for the actions people claim against them.

By settling, Prince Harry and Lord Watson have avoided paying large sums in legal fees, and join the ranks of several other high-profile cases like Hugh Grant and Sienna Miller.

Grant said he "did not want to accept" the "enormous sum of money" he had been offered to settle - but that a trial was likely to prove "very expensive".

Shortly after Prince Harry's lawyer David Sherborne spoke outside court, the duke's joint claimant Tom Watson read his statement out. If you're just joining us, here's a recap:

A predator to big beast of media: He calls Prince Harry a “predator” to the “big beast” of the news giants. Lord Watson is grateful to the duke for his determination, he adds.

Harry's bravery and courage: Watson praised Prince Harry's "bravery and astonishing courage" in this case.

Will Met Police act?: He adds that the question for Met Police Commissioner Sir Mark Rowley, is "when we pass on our dossier exposing wrongdoing to the police - will the Met Police act?"

Question for the PM: Ending his statement,Watson directs a question for Prime Minister Keir Starmer: "I know you care deeply about fairness in the law, but are we really willing to continue as a country where some corporate executives are above the law and out of the reach of the police?"

We've just heard from Prince Harry's lawyer David Sherborne, speaking outside the High Court. If you're just joining us, here's a recap of what he said:

Held to account: Sherborne says News Group Newspapers (NGN) "has finally been held to account for its illegal actions and its blatant disregard for the law".

Obstructed justice: He says NGN "deleted over 30 million emails and made false denials", adding that by doing so they obstructed justice.

Cover their tracks: He says they "repeatedly lied under oath to cover their tracks" in court and at the Leveson inquiry.

Call for investigation: He calls on Parliament and the police to investigate this illegal activity, as well as "perjury and coverups".

Silence is deafening: Sherborne adds that senior executives' failure to answer questions under oath spoke volumes but their silence is deafening, he says.

Watson pays tribute to Harry's bravery and courage.

NGN owes apologies to so many people - thousands have endured this heinous behaviour - including victims of terrorism and grieving families, he says.

No one is above the law, Watson says.

Watson goes on to say the question for Met Police Commissioner Sir Mark Rowley, is when we pass on our dossier to the police - will the Met Police act?

Watson finishes with a question for the prime minister.

He asks the PM: "Are we willing to continue as a country where some executives are above the law and out of the reach of the police?"

Watson continues, saying he is glad NGN has acknowledged "the direct harm" caused by surveillance of journalists and "their army of private investigators".

He says these incidents were not "isolated" but rather "industrial in scale".

He described Prince Harry's "bravery and astonishing courage" and thanked him for his efforts.

Imogen James
Reporting from the High Court

Image source, Reuters

Lord Watson - a former Labour MP and deputy leader of the party - is now reading his statement.

Like other claimants, he says "I wish they had left my family alone, today I’m glad they have finally accepted responsibility."

He calls Prince Harry a “predator” to the “big beast” of the news giants. Lord Watson is grateful to the duke for his determination, he adds.

He asks for a personal apology from Rupert Murdoch to Prince Harry, the King and to everyone else who suffered “at the hands of his empire”.

Sherborne ends his comments by saying: "Today the lies are laid bare. Today, the cover-ups are exposed. And today proves that no one stands above the law. The time for accountability has arrived."

Image source, Reuters

Sherborne says it is no surprise that all their senior executives refused to turn up to court to give evidence.

Their failure to answer questions under oath spoke volumes but their silence is deafening, he says.

Harry's willingness to take NGN to trial has led to "historic admission of guilt" Sherborne says.

"As a direct result of him taking a stand, Prince Harry and his immediate family have also had to repeatedly withstand aggressive and vengeful coverage since starting his claim over five years ago," Sherborne says.

He calls on Parliament and the police to investigate this illegal activity, as well as "perjury and coverups".

"It's clear now this has occurred throughout this process, including through sworn evidence in inquiries and court hearings, and in testimony to Parliament, until today’s final collapse of NGN’s defence."

Sherborne, speaking on behalf of Prince Harry and Lord Watson, says senior executives at News Group Newspapers obstructed justice by deleting over" 30 million emails" and "making false denials".

They then "repeatedly lied under oath to cover their tracks" in court and at the Leveson inquiry, he says.

Sherborne adds, at Rebekah Brooks' trial in 2014, Brooks said she ran a "clean ship", now as CEO of the company Brooks admits she ran a "criminal enterprise".

"Far from being relics of a distant past, many of those behind these unlawful practices remain firmly entrenched in senior positions today, both within News UK and other media outlets across the world, wielding editorial power and perpetuating the toxic culture in which they continue to thrive," he says.

News Group Newspapers unlawfully engaged more than 100 private investigators on 35,000 occasions, over at least 16 years, Sherborne says.

This happened as much at The Sun as The News of the World, with the knowledge of all editors and executives "going to the very top of the company".

"What’s even worse is that in the wake of the 2006 arrest of a royal correspondent, there was an extensive conspiracy to cover up what really had been going on and who knew about it," he says.

Imogen James
Reporting from the High Court

A pin could drop here, everyone else is silent bar David Sherborne, Prince Harry’s lawyer.

Aside from that are the camera clicks and flashes as he delivers a statement on behalf of the absent Prince Harry.

It’s a strong statement, obviously filled with a lot of emotion. Today’s result is a show of “resilience” from Prince Harry and Lord Tom Watson, Sherborne says.

Sherborne continues, saying "News Group Newspapers has finally been held to account for its illegal actions and its blatant disregard for the law".

Imogen James
Reporting from the High Court

Image source, Reuters

A group of very smartly dressed lawyers have come out into the cold, clutching laptops and notepads.

Prince Harry’s lawyer, David Sherborne, begins reading a statement from the duke. They call it a “monumental” victory today, that represents a “vindication” for others who were "strong-armed" into giving up against the news group.

Imogen James
Reporting from the High Court

As the statement was read out in court, all the journalists in the overflow room looked at one another.

We leaned forward, awaiting to hear that key word of "settlement", which eventually came. We all scrambled.

Clarifying lines with one another, keyboards were being bashed. Then we heard there would be a press conference, so many of us got up and left quickly.

It's certainly not the morning we bargained for.

We're expecting to hear from Prince Harry's lawyers and the other claimant Lord Watson imminently. Stay with us.

Prince Harry will feel vindicated, but there's also a win for Sun ownerspublished at 11:04 Greenwich Mean Time 22 January

11:04 GMT 22 January

Dominic Casciani
Reporting from the High Court

This settlement is absolutely massive.

It’s the first time that NGN has admitted wrongdoing against Prince Harry, specifically involving “unlawful activities” by private investigators working for the Sun.

The statement does not explicitly admit unlawful activity by Sun journalists - but it is still a huge win for the prince. He will feel vindicated.

But there is also a win for NGN.

It has spent an incredible sum fighting claims - and now paid out to the Prince too.

But it’s avoided the worst-case scenario of a court trial leading to a possible judgement that there was a corporation-wide cover-up, implicating its leaders all the way to the top.

Earlier we reported that a source told the BBC that NGN - the Sun's owners - were "surprised" by Harry's "serious approach" to the settlement.

Now, a source from Prince Harry's team says the duke was not surprised that NGN held that view, adding "the apology provides all the insight you need".

Imogen James
Reporting from the High Court

I've just run downstairs as we got word that we will be hearing from Prince Harry's lawyer and the other claimant Lord Watson.

I'm part of a large press huddle with many cameras and smartphones at the ready.

We're eager to hear these statements, after such a shocking decision in court today to settle.

Stay tuned.