Phone-hacking victim Hugh Grant has accepted a "substantial sum" after settling his legal claim against the News of the World, his solicitor has revealed.

The British actor will donate the money he receives from News Group Newspapers to the Hacked Off campaign for a free and accountable media, his solicitor, Mark Thomson, said.

"Hugh Grant has settled his claims for damages and other legal remedies arising out of the unlawful activities of News of the World journalists and others over a number of years," he said in a statement.

"News Group Newspapers have agreed to pay him a substantial sum by way of damages.

"He has instructed us to donate all of his damages plus an additional payment from him to the Hacked Off campaign for a free and accountable media. This will be done as soon as payment is received.

"A statement in open court will be made shortly in the new year."

The Four Weddings And A Funeral star has been a vociferous critic of press invasions of privacy since the phone-hacking scandal broke last year.

He told the Leveson Inquiry it had become "fashionable" to hate him in Britain and said journalists were "entitled to their opinion" but hit out at press intrusion and "lazy reporting".

Newspapers are closer than ever to reaching an agreement on the creation of a new watchdog, Press Complaints Commission (PCC) chairman Lord Hunt said. Around 100 editors and publishers, including Daily Mail editor Paul Dacre and The Sun's Dominic Mohan, met to examine draft regulations.

Editors and publishers have until January 3 to raise concerns or comment on the plans.