Jordan and husband Peter Andre have accepted substantial damages and a public apology over a claim that they were shocking and uncaring parents.
They'll donate half the sum, which they wouldn't reveal, to the NSPCC and the Vision Charity, and the rest into a trust fund for their children - Junior, Princess Tiaami and Harvey.
Jordan, 30 - real name Katie Price - and 35-year-old Andre sued News Group Newspapers over an exclusive expose in February based on an interview with former nanny Rebecca Gauld.
Solicitor Mike Brookes told Mr Justice Eady at London's High Court: "In general terms, the article portrayed the claimants as shocking and uncaring parents who put their own needs above those of their children, and who are so reckless that they even endanger their children's health and welfare."
The newspaper's solicitor, Joanna Workman, apologised and accepted the allegations were untrue, and that the couple were decent and responsible parents, who loved and cared deeply about their children.
After the brief hearing the couple emerged from the Royal Courts of Justice.
Katie read out a prepared statement, saying: "Pete and I love our kids and would do anything for them. Anyone who has kids can imagine how it would feel to be accused publicly of being bad parents.
"We came here today to see that justice was done and that our names were cleared. Now that the paper has accepted the story wasn't true, apologised to us, and paid us damages and our costs, we believe the record has been set straight and our names have been cleared."