"The article reported that ’the red-hot footage... captured her enjoying a marathon, two-hour sex session in a nightclub changing room’."

Mr Smith said that Dani was said to know of the existence of the film and was "terrified by the footage... fearing it could end up on the internet’.

He added that the newspaper did not put the allegations to the reality TV star before publishing.

He said that the model had made it clear from the outset that any damages would be donated to The Linda McCartney Memorial Trust.

Stephen Bacon, counsel for Express Newspapers, said that it offered its sincere apologies.

"The defendant acknowledges that the false allegations should never have been published. It is happy to meet the claimant’s request that a donation be made to the charity of the claimant’s choice."

Dani wooed by two new men? - April 13 2007
Danielle Lloyd doesn’t seem to be suffering too much following her split with Teddy Sheringham - she’s apparently being pursued by two hunky new men.

The WAG has been on a few dates with footballer Marcus Bent and now US singer Joe is chasing after her, according to the Daily Star.

A friend of the singer told the paper: "He met her on Tuesday night where she partied the night away with Joe and US singer/producer and rapper Timbaland who’s topping the charts this week.

"Joe thinks Dan’s the hottest thing ever and that she is ’so sexy’. He and Dani have been texting each other constantly since they met and have arranged to meet before he leaves London."

The pal added: "Dan’s being very secretive about this but she’s single and he’s great looking so who knows?"

But the model has also been on three dates with footy ace Marcus, the paper reports.

"Danielle gets on really really well with Marcus and they have a lot in common. They are very close and they have a laugh," a friend said. "But she is single and just loves going out and having fun."

Dani in £1 million book battle? - April 1 2007
Danielle Lloyd is apparently at the centre of a £1 million bidding war between publishers who are eager to snap up the rights to her warts-and-all story.

The 23-year-old model is apparently set to spill the beans on the inside worlds of showbiz and football in her explosive memoirs, according to the Daily Star.

A source said: "It will be a red-hot page-turner - full of steamy details about Dani’s raunchy love life and late-night dramas."

The book is set to include details on what really went on the Celebrity Big Brother house and the Liverpudlian’s take on her split from former footballer boyfriend Teddy Sheringham.

"Danielle has a lot of history with Teddy and she feels this book would help her lay a few of her demons to rest over the issue," the source added.

The brunette has seen her profile soar since her appearance on the Channel 4 show earlier this year.

Projects in the pipeline apparently also include a new range of sexy underwear, co-designed by her best pal Laura Costantinou, called Designed4Love.

The oldest trick - Mar 22 2007
Want to make a man jealous? Why not try dancing provocatively with another man - preferably one from a rival football team? It’s not subtle, but it seems it worked for Danielle Lloyd.

The ex-WAG was apparently making a bid to return to the football fold by getting very friendly indeed with soccer star Marcus Bent - in front of former lover Teddy Sheringham.