width=304LONDON (Reuters) - Singer Peter Andre accepted substantial undisclosed libel damages on Friday over a newspaper claim that he was unfaithful to his now estranged wife, model Katie Price.

The 36-year-old was at London's High Court for the settlement of his action over a story saying he had been unfaithful with a Price lookalike, which appeared in The Sunday People newspaper in May.

These allegations were very upsetting and offensive to Mr Andre, as they are untrue, his lawyer Mike Brookes told the court.

He added that the paper's publisher MGN Ltd had apologized and had agreed to pay Andre's damages and legal costs, the Press Association reported.

Speaking outside court, the singer said he was pleased that the paper had accepted that the story was untrue and hurtful to myself.

I have never been unfaithful to my wife, not with this girl or with anyone else, he said.

I also need to add that if anyone slanders my name, I will not hesitate in taking action against them.

Last year, Andre and Price accepted damages over a News of the World article portraying them as bad parents.

Andre split from Price, 30, who found early modeling fame under the name Jordan, in May after four-hand-a-half years of marriage. The couple had met while filming the jungle reality TV show I'm a Celebrity ... Get Me Out Of Here!.

They have two children together, Junior Savva, 3, and Princess Tiaamii.

This story has led to a lot of speculation about whether I was faithful to my estranged wife, which even led her to mention it on a breakfast television show last week, Andre said.

Now hopefully this will bring these rumors and lies to an end and let me move on with my life.

Andre, who was born in England but brought up in Australia, had two number one hits in the mid 1990s with Flava and I Feel You.

(Reporting by Stefano Ambrogi; Editing by Michael Holden)