WWW- Justin Timberlake has won the battle of the Trousersnake.

The boy bander accepted an apology and substantial damages from U.K. tabloid News of the World Wednesday after the newspaper admitted publishing a false and libelous story claiming that Timberlake had cheated on gal-pal Cameron Diaz with a British model.

The tall tale, which ran last July, was headlined “Trousersnake Did Dirty on Diaz,” and included a detailed account of model Lucy Clarkson’s purported fling with Timberlake.

“I was impressed,” Clarkson recalled to the tab. “He’s bigger than average, and I was overwhelmed. But I didn’t really like kissing him, because his lips were too small.”

However, apparently unswayed by the compliment to his nether regions, Trousersnake, er, Timberlake denied ever having met Clarkson, let alone bedding her.

The “Rock Your Body” singer demanded an apology from the tabloid and, when his request was denied, went forward with legal action in London’s High Court.

Clarkson subsequently admitted that her story was an “entire fabrication on her part,” her lawyer, David Griffiths said in court. The model was ordered to issue an apology to Timberlake and to return the money she was paid for the story.

News of the World was also ordered to apologize in court and to run a prominent retraction of the story.

Benjamin Beabey, lawyer for the tabloid’s publisher, News Group Newspapers Ltd., said that the paper apologized “for the distress and embarrassment caused by this article. It entirely accepts that the allegations are without foundation.”

The tabloid was forced to pony up a hefty settlement which Timberlake’s rep, Ken Sunshine, said would be donated to charity.

“Yet again, a tabloid has been caught lying,” Sunshine said in a statement. “Thankfully the judicial process worked, but how many cases like this will it take before these tabloids feel obligated to print the truth. Have they no shame?”

Both Clarkson and News of the World were forbidden from ever repeating the allegations.

Timberlake’s lawyer, Simon Smith, said that his client was satisfied with the terms of the settlement.

“In the light of these developments, Mr. Timberlake has decided not to pursue these proceedings and considers that his reputation has been fully vindicated,” Smith said.

Timberlake and Diaz are becoming pros at fending off rumors about their relationship.

Last month, Diaz won libel damages and an apology from U.K. tabloid the Sun after it published a false story claiming she was caught in a steamy makeout session with a married producer.

In May, the twosome laughed off a report in News of the World that claimed that were planning to tie the knot in a secret ceremony in the south of France.

Though they may not be skipping down the aisle just yet, the duo will be joining forces for Shrek 3, in which Diaz will reprise the role of Fiona and Timberlake will voice Artie, a teenage King Arthur. The film is due in 2007.