Businessman Mohamed Al-Fayed's defamation suit against Paul Anka has settled in the singer's favour after he produced cheques the millionaire insisted he had never paid.

Al-Fayed sued Anka for claiming in his autobiography to have loaned the businessman's son Dodi - the last lover of British royal Diana, Princess of Wales - $150,000 (£100,000) after he had a large amount of cash confiscated by U.S. Customs.

In the book, Anka claimed Al-Fayed eventually paid back his son's debt out of fear the singer would reveal the incident, but the revelation sparked a lawsuit from the angry father.

Al-Fayed denied the entire incident, but Anka's lawyers produced copies of cheques made out to the singer, at which point the case was settled. The terms of the settlement remain confidential, but editors at report Al-Fayed has agreed to pay $70,000 (£46,666) to Anka's lawyers.

Dodi Al-Fayed was killed along with Princess Diana in a car crash in Paris, France in 1997.