Fox News to pay $787million to avoid court battle over Trump election claims

In the aftermath of the election Fox had aired claims without any proof that Denver-based Dominion's ballot-counting machines were used to manipulate the presidential election in favour of Democrat Joe Biden.

The total figure being paid by the new outlet is the largest ever paid in a media libel case.

In a statement read out on air on the channel, Fox said: "We are pleased to have reached a settlement of our dispute with Dominion Voting Systems."

It added: "We acknowledge the Court's rulings finding certain claims about Dominion to be false.

"This settlement reflects Fox's continued commitment to the highest journalistic standards.

"We are hopeful that our decision to resolve this dispute with Dominion amicably, instead of the acrimony of a divisive trial, allows the country to move forward from these issues."

A full court trial risked seeing Fox presenters and even chairman Rupert Murdoch being forced to testify in person.

Jurors would have been asked to determine whether the broadcaster has knowingly spread false information or recklessly disregarded the truth.

Dominion had accused Fox of spreading the untrue claims to boost its ratings and prevent its viewers from migrating to other media competitors on the right.

Following the settlement, Dominion CEO John Poulos called the payout "historic."

"Fox has admitted to telling lies about Dominion that caused enormous damage to my company, our employees and our customers," he said.

"Truthful reporting in the media is essential to our democracy."

A separate lawsuit brought by US voting technology company Smartmatic is still going ahead.