Robert Murat, the first named suspect in the investigation into the disappearance of Madeleine McCann, has settled a libel claim for damages against several British newspapers.

The 34-year-old expatriate, who lived 100 yards from where the toddler vanished from an Algarve holiday apartment in May last year, launched proceedings against 11 British newspapers and Sky TV in April over allegedly libellous stories.

It was the largest number of separate damages claims made against the British media by one person on the same issue.

Yesterday, a spokeman for the Algarve-based property consultant said a settlement and written apology had been agreed with the newspapers.

A spokeswoman for Sky said the TV station was not involved in the current settlement and has not been served papers by Mr Murat's lawyers. Although there was speculation by media lawyers that Mr Murat could receive about £2m, it is understood the figure is likely to be nearer £550,000.

Yesterday law firm Simons, Muirhead and Burton, which acts for Mr Murat, confirmed that a statement would be read at the High Court tomorrow but refused to comment further.

The media outlets named in the original libel action were The Scotsman, Sky, Daily Express, Sunday Express, Daily Star, Daily Mail, Evening Standard, Metro, Daily Mirror, Sunday Mirror, News of the World and The Sun.

The story about the disappearance of Madeleine has captivated media outlets and the public since she vanished last year.

She disappeared a few days before her fourth birthday while her mother Kate, and her father, Gerry, who is originally from Glasgow, were having dinner with friends in a nearby tapas restaurant.

The reported settlement follows legal action by Madeleine's parents which led to front-page apologies from the Daily Express and Daily Star in March after the papers suggested the couple were responsible for their daughter's death.

The newspapers also paid £550,000 to the Find Madeleine fund.

Mr Murat was first questioned about the case 11 days after Madeleine disappeared. Police searched the villa he shared with his mother after a journalist spoke to the British Embassy and the police about him.

The expatriate, who described himself as half- Portuguese, had become known to journalists and told them he had been helping police with translation work during the search.

He strenuously denied any involvement in Madeleine's disappearance, saying he was at home with his mother.

Media commentator Roy Greenslade said the libel settlement in favour of Mr Murat was "hardly a surprise".

He added that the case demonstrated that some newspapers had "lost their heads" over the Madeleine McCann story.