Indera Mahkota Member of Parliament Azan Ismail and Utusan Melayu (Malaysia) Berhad have agreed to settle the former's RM29 million suit out of court, following the Malay daily's agreement to carry a correction and apology over a defamatory article published by the defendant, three years ago.

Both parties recorded the settlement before Justice Datuk Hue Siew Kheng in her chambers today.

Following the settlement, Azan from Parti Keadilan Rakyat (PKR) has withdrawn the suit, and Hue allowed the plaintiff's action without the need to file a fresh suit.

The defendant's counsel, T.K.V.Mohanakumar told reporters that among the terms of settlement agreed by both parties was that the daily would publish a correction and an apology within seven days from today.

Azan's counsel, Vasudevan Appu said the defendant agreed to pay an undisclosed amount of money to the plaintiff as part of the settlement.