Katie Price has been ordered to pay her former manager Claire Powell “substantial” slander damages over claims that she had an affair with Price’s ex-husband Peter Andre.

Powell, of Can Associates Limited, sued Price over unaired remarks made during a recording of The Graham Norton Show last October, Sky News reports.

Her solicitor Mike Brookes said that Price told Norton, Jo Brand, Jackie Collins and a 600-strong audience that Powell had had an affair with Andre, despite his client being engaged to Neville Hendricks, who is father to her child.

Brookes said: “To be accused of infidelity, with one of her longstanding and high-profile clients, was obviously very damaging and distressing for Ms Powell – the most obvious reason being that the allegation was completely untrue.”

Speaking to Mr Justice Eady at London’s High Court, Brookes added that the BBC had “quite sensibly” edited out the comments but noted that they had nevertheless been picked up by the press.

Price’s lawyer Keith Ashby said: “She greatly regrets what has happened, and joins in the making of this statement in order to assist in setting the record straight.”

The glamour model was not in court for the hearing but Brookes said that she apologised unreservedly for the comments, accepted that the allegation was untrue and agreed to pay “substantial compensation” in addition to Powell’s legal costs.

Speaking to reporters outside the court, Powell said: “I’m just glad it’s been sorted. I didn’t really want to be in court but if something bad is said which is going to trash your reputation, you have to clear your name.”