Frank Boyd, who co-owns the William Ewart firm, sued the paper over an article that made references to an arson attack on a Belfast retail complex, the BBC reports.
The publishers of the Sunday World also issued an apology and have agreed to pay the costs of his libel action.
Mr Boyd's solicitor said his client's reputation had been vindicated.
Mr Boyd sued over a story that focused on an inquiry into alleged corruption linked to government contracts.
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He was named in the piece, which also referred to a fire at the North Street Arcade in 2004.
As part of a settlement reached in the proceedings, lawyers for the newspaper read out a statement at the High Court in Belfast.
It said: "In the 25th of January 2009 edition of the Sunday World the defendant published an article under the headline 'Whistleblower sparks fraud squad probe into MoD contracts' which made reference to the respected businessman and property developer Frank Boyd.
"The defendant wishes to make it clear that their article was not intended to infer any improper or unlawful conduct on the part of Mr Boyd and they would unreservedly withdraw any inferences to the contrary.
"The defendant apologises to Mr Boyd and as a mark of their regret have agreed to pay him a substantial sum in damages and to pay his reasonable legal costs."
Mr Boyd's lawyer, Paul Tweed, said his client was satisfied with the outcome
The Sunday Times rich list for 2010 estimated that Mr Boyd is worth £160m. In addition to his interest in William Ewart he also owns Killultagh Estates.
(NS/GK)
