Justin Timberlake and Jessica Biel have settled a lawsuit against a top celebrity magazine over pictures it published of him at a party in a Paris nightclub.

The Hollywood couple lodged a defamation claim in the courts in Ireland against the publishers of Heat over an article, photographs and quotes attributed to Total Recall actress Jessica.

The lawsuit was lodged in the High Court in Dublin against the magazine's publishers, the German Bauer Media Group, over an edition of Heat from September 6-12.

The court heard the article was based on an unfounded report regarding Justin's alleged behaviour at a birthday party in the club after one of his shows.

Singer and actor Justin and screen beauty Jessica have been married for two years.

At a brief hearing before Mr Justice Nicholas Kearns, the president of the High Court in Ireland, lawyers for the couple confirmed a settlement had been reached.

And the Bauer group issued an unreserved apology.

The couple's lawyer Paul Tweed, of Johnsons Solicitors, read a brief statement outside the Four Courts but declined to divulge any details of a financial settlement.

"Justin Timberlake and Jessica Biel are very satisfied with this categoric retraction of what was a false and unfounded story, together with the comprehensive apology from Bauer Consumer Media, the publishers of Heat magazine," Mr Tweed said.

"The couple will not be making any further comment in relation to this matter, but will not hesitate to take similar legal action if false allegations regarding the state of their marriage are repeated."

The defamation claims were lodged about a fortnight ago.

The action was taken in Dublin as the weekly celebrity magazine is sold in Ireland as well as countries across Europe.

In the agreed statement read in the High Court, a lawyer for the Bauer group admitted the article - headlined "Justin Timberlake gets flirty with another woman", "It is not his wife!" and "The flirty photos that rocked Justin and Jessica's marriage" - was based on an unfounded report.

The article also included purported statements improperly attributed to Jessica which the publishers said Heat now understands the actress never made.

"The article was based on an unfounded report regarding Justin Timberlake's alleged behaviour at a club following a performance in Paris, to celebrate a birthday and also included a number of purported statements improperly attributed to Jessica Biel, which Heat now understands had never been made by her," the statement said.

"The defendant accepts that the article was false and withdraws any inferences that questioned the state of Justin and Jessica's marriage.

"The defendant regrets any embarrassment caused to the couple and unreservedly apologises to them."