Dominic Casciani
Reporting from the High Court

Image source, PA Media

The parties tell the judge that the settlement and apology means that a parallel part of the case, concerning overarching allegations of general and widespread unlawful behaviour and an alleged cover-up by NGN chiefs, will no longer go ahead.

That means that Prince Harry has won a significant apology but the unproven allegation that there was substantial wrongdoing by the CEO Rebekah Brooks and others will no longer be tested.

Brooks was cleared of criminal wrongdoing in 2014 ad NGN has always maintained there was no cover-up as the police investigated the News of the World in 2011.

As a reminder, Harry previously said he wasn't willing to settle and wanted to test the claims in court.

Now, a source tells BBC News that NGN - the publishers of The Sun - were "surprised by the serious approach by Prince Harry for settlement in recent days".

Imogen James
Reporting from the High Court

Mr Justice Fancourt says he thanks them for this update, and vacates the trial, awaiting further updates from the parties.

There will be no further attendance, he adds.

He is then thanked by David Sherborne for the "care and attention" he has given this case.

Mr Justice Fancourt addresses the press, apologises for the waiting around we had to do yesterday and the lack of clarity.

NGN offers a full and unequivocal apology to the Duke of Sussex for the serious intrusion by The Sun between 1996 and 2011 into his private life, including incidents of unlawful activities carried out by private investigators working for The Sun.

NGN also offers a full and unequivocal apology to the Duke of Sussex for the phone hacking, surveillance and misuse of private information by journalists and private investigators instructed by them at the News of the World.

NGN further apologises to the Duke for the impact on him of the extensive coverage and serious intrusion into his private life as well as the private life of Diana, Princess of Wales, his late mother, in particular during his younger years.

We acknowledge and apologise for the distress caused to the Duke, and the damage inflicted on relationships, friendships and family, and have agreed to pay him substantial damages. It is also acknowledged, without any admission of illegality, that NGN's response to the 2006 arrests and subsequent actions were regrettable.

NGN also offers a full and unequivocal apology to Lord Watson for the unwarranted intrusion carried out into his private life during his time in Government by the News of the World during the period 2009- 2011.

This includes him being placed under surveillance in 2009 by journalists at the News of the World and those instructed by them. NGN also acknowledges and apologises for the adverse impact this had on Lord Watson's family and has agreed to pay him substantial damages.

In addition, in 2011 News International received information that information was being passed covertly to Lord Watson from within News International. We now understand that this information was false, and Lord Watson was not in receipt of any such confidential information. NGN apologises fully and unequivocally for this.

Imogen James
Reporting from the High Court

After reading out an apology to Prince Harry, the claimant's lawyer David Sherborne also reads out a further apology to Lord Watson from NGN.

They say a similar statement, and apologise for the phone hacking and the impact it has had on him.

Sean Coughlan
Royal correspondent

The settlement is a hugely dramatic turnaround. After yesterday’s delay it became apparent that negotiations on a deal were taking place between Prince Harry’s team and News Group Newspapers.

It seems a sharp change from Prince Harry’s previous position that it was about “accountability”, as he prepared to have his day in court and his lawyers were ready to blast a broadside of claims about tabloid intrusion and corporate cover-ups.

Now there is an agreement – and if not a handshake, both of the previously warring sides have accepted a deal.

It might have been an offer from NGN that became impossible to refuse, not least because of the cost implications. Civil law pushes opposing sides towards a settlement, as the 'winner' could end up paying for the costs of their opponent if the damages awarded are less than they were already offered.

For NGN, having spent £1bn on previous out-of-court settlements, almost any extra cost to stay out of court must have seemed worth it.

But after such a big build up, this legal showdown is over before it began.

Imogen James
Reporting from the High Court

News Group Newspapers issues an apology to Prince Harry, being read by his lawyer David Sherborne, of the "serious intrusion by the Sun into his private life... including incidents of unlawful activities carried out by private investigators working for The Sun."

They also apologise for phone hacking, and the impact this had on him as well as the impact of the "extensive coverage and serious intrusion on his private life", including the coverage of his late mother, Princess Diana.

They apologise for the impact this has had on his relationships and friendships.

They have agreed to pay substantial damages, the statement adds.

That "concludes the case", David Sherborne says.

There is a flurry of activity in the High Court as details about an apology and agreement between the Sun's publishers and Prince Harry, stay with us.

Dominic Casciani
Reporting from the High Court

News Group apologises to Prince Harry for unlawful intrusions into his private life.

Dominic Casciani
Reporting from the High Court

Barristers are robed up and the judge, from behind his door, is clearly itching to get going as his clerk keeps peeking back into the room to see if everyone has sorted themselves out.

There are nods and discussions between David Sherborne for Prince Harry and Anthony Hudson KC for NGN.

That’s not something we have seen often in this rather bitter fight. Roddy Chisholm Batten, the prince’s solicitor, is also now in court.

There are some smiles and a lot of intent reading of something on a laptop screen.

There are a number of people involved in this case, so here are some of the key names to know:

Mr Justice Fancourt: The judge hearing the case

Anthony Hudson KC: Lawyer representing News Group Newspapers

Clare Montgomery KC: Lawyer representing News Group Newspapers

David Sherborne: The lawyer for Prince Harry and Lord Watson

The Duke Of Sussex Prince Harry: One of two claimants against NGN and senior royal family member

Lord Tom Watson: The other claimant, and former deputy Labour leader

Helena Wilkinson
Reporting from the High Court

Image source, PA Media

Prince Harry's barrister has just turned up to court.

David Sherborne is asked by a BBC producer if there has been a settlement.

Mr Sherborne says good morning and "...have to see".

Imogen James
Reporting from the High Court

This trial has been in the works for years. After settling more than 1,000 claims, there are two men, Prince Harry and Lord Tom Watson left fighting News Group Newspapers (NGN).

Here's what they want:

Prince Harry, the Duke of Sussex, is arguing two things. Unlawful information gathering by The Sun, and also that there was widespread knowledge of this illegal activity, and there was a coverup involved.

He tried to argue for phone hacking, but was denied due to time limitations.

Lord Tom Watson says his phone was targeted around the time he was investigating the Murdoch newspapers at the height of the scandal almost 15 years ago.

NGN denies this claims, and the NGN executives who they accuse of the cover up, including News UK CEO Rebekah Brooks, have denied wrongdoing.

They will argue that the duke has run out of time to bring these allegations and test each article that he has claimed the information in them came from dodgy sources.

Finally, they will bring witnesses to rebut Prince Harry and Lord Watson's broader allegation that the senior staff of NGN knew about and destroyed evidence in relation to unlawful information gathering.

The question on many people's mind will be if the Prince will appear.

For now, he remains in the US, where he lives and he won't be appearing today.

However, lawyers have said he will appear to give evidence later on in the trial, unless a settlement is agreed.

He has previously done this in a similar case in 2023 against the Daily Mirror, Sunday Mirror and The People newspapers.

When he did, he was the first senior royal to give evidence in a law court in 132 years.

He has refused to settle, citing his motivation as "accountability".

Imogen James
Reporting from the High Court

We aren't quite sure for the reasons behind yesterday's delays, but the judge, Mr Justice Fancourt, says he understood there was a "settlement dynamic at play".

Both lawyers kept citing issues of time differences - the Duke of Sussex is in the US, so it was before dawn for him when we were in court yesterday.

Through all of Prince Harry's cases against various publishers, he has refused to settle, citing "accountability" as his motivation.

But, many other high-profile claimants have ended up walking away with large sums as opposed to going to court.

These include Hugh Grant and Sienna Miller.

A settlement would mean no trial, and no airing of more private information - but in giving settlements, News Group Newspapers has never admitted liability in cases against The Sun.

It has settled cases brought by some 1,700 claimants, to the tune of around £1bn including legal costs.

If Lord Watson and Prince Harry refuse a settlement, they will then be liable for a very expensive bill at the end of the trial if they lose, or if they win.

If a claimant turns down an offer of settlement and is later awarded less in damages by a judge, they have to pay the legal costs of both sides.

Imogen James
Reporting from the High Court

As we left last night, we were told that court would be resuming at 10:00 GMT this morning.

However, after arriving before the building opened so I could secure a spot, it seems my early arrival was unnecessary.

As seems to be a theme of this trial, we face another delay, and court will now begin at 10:30 GMT.

Helena Wilkinson
Reporting from the High Court

Image source, PA Media

We are outside the court building and the former Labour MP Tom Watson has just arrived.

He is the other claimant in the case alongside Prince Harry.

Imogen James
Reporting from the High Court

Good morning from the High Court's Rolls building.

A throng of journalists are here, many the same as yesterday, hoping that the trial will finally begin.

There's also a large swarm of photographers outside the front doors, hoping to get a glimpse of whoever arrives.

Yesterday, we had a surprise appearance from Lord Watson, the joint claimant in this case with Prince Harry.

If things go to plan, we will be hearing their opening arguments, with the News Group Newspapers due to deliver their statements later in the week.

Court is due to begin at 10:30 GMT, and hopefully there will be no more delays, unlike yesterday.

Matt Spivey
Live page editor

Welcome back to our coverage of the legal battle between Prince Harry and News Group Newspapers (NGN) - owners of the Sun newspaper - for allegedly unlawful newsgathering, as the eight-week trial in the High Court is still yet to officially begin.

Yesterday saw a series of delays as the judge, Mr Justice Fancourt, denied lawyers' requests to delay the court - before an appeal caused a hold up.

We are still awaiting the opening remarks from Prince Harry and former Labour MP Lord Tom Watson's lawyers, as both accuse NGN of unlawful information gathering.

A spokesperson for NGN said: "Both claimants allege unlawful destruction of emails by News International between 2010-2011. This allegation is wrong, unsustainable, and is strongly denied. NGN will be calling a number of witnesses including technologists, lawyers and senior staff to defeat the claim."

All eyes are currently on a potential settlement overnight, but with no confirmation yet it all pins on what we hear in court this morning.

We'll be bringing you the latest updates and analysis from our reporters from inside the courtroom, stay with us.

Imogen James
Reporting from the High Court

We’re pausing our live coverage shortly.

After a day of delays, the court has risen and finished proceedings.

That’s because the lawyers wanted a further delay, and the judge didn’t, but they appealed against him.

Today was supposed to mark the first day of opening remarks by lawyers for Prince Harry and Lord Watson, who accuse News Group Newspapers of unlawful information gathering.

We don’t know the reasons for the hold up, but we do know that we will be back in court tomorrow from 10:00 GMT.

I’ll be there, catching the next developments. See you then.