The UK’s Daily Mail newspaper has agreed to pay damages and costs to the first lady of the United States over an article about her modelling career.

The newspaper had reported allegations that Melania Trump once worked as an escort, but later retracted its article.

The story was published during the US election campaign last year. Mrs Trump accepted damages and an apology from the newspaper at London’s High Court.

She filed lawsuits against the Daily Mail newspaper in the United Kingdom, and its digital operation Mail Online in the United States.

The US suit, filed last year, sought damages of $150m (£120m). The amount accepted by Mrs Trump in London was not disclosed in court.

However, reports suggest the payout was closer to $3 million, including legal costs and damages.

It is understood it will also settle the case in New York. In its apology, the Daily Mail acknowledged it had published “allegations that she provided services beyond simply modelling”.

The article also claimed that Mr and Mrs Trump may have met three years before they actually did, and later “staged” their first meeting.

“We accept that these allegations about Mrs Trump are not true,” the newspaper said.

A lawyer for Mrs Trump told the London court the allegations “strike at the heart of the claimant’s personal integrity and dignity”.

Her lawyer said the double-page spread in August last year, titled “Racy photos and troubling questions about his wife’s past that could derail Trump”, featured an old nude photo of Mrs Trump from her modelling career.

“Readers of the newspaper that day could not fail to miss the article,” he said.