"The Hours" Oscar winner Nicole Kidman has been awarded "substantial" undisclosed damages in London's High Court on Thursday to settle a libel suit she fought against the Daily Mail tabloid, which had reported that she had an adulterous affair with actor Jude Law.

Reuters reports that Kidman, 36, also accepted a public apology from the Daily Mail, which had suggested in a March 6 story that she had led her "Cold Mountain" costar, who is married to actress-designer Sadie Frost, to cheat on his wife.

The story also implied that Kidman was a liar because of her repeated denials of the affair.

"The publication of this article has caused grave damage to the claimant's personal and professional reputation and she has suffered considerable embarrassment and distress," Kidman's attorney Gideon Benaim told Justice Gray, the news service reported. (Kidman was not in court for the proceedings.)

"Her embarrassment was particularly acute," Benaim continued, "as the allegations coincided with the Oscars award ceremony in Los Angeles in which she had been nominated for an award for Best Actress in a leading role for her role in 'The Hours.'"

Daily Mail editor Paul Dacre and journalist Nicole Lampert confirmed that their paper's allegations were untrue and without foundation, said Reuters.