Because of the famous interview with Princess Diana in 1995, the BBC is paying her former private secretary damages.
The British broadcaster acknowledges that Patrick Jephson was harmed by the way the interview came about, the BBC said on Thursday.
An agreement was reached with Jephson, who works as a journalist and author.
"The BBC apologizes unreservedly," the statement said.
They have taken over the legal costs and also paid a “substantial sum” in damages.
Jephson announced on Thursday that he would donate the money to a children's hospice in Wales.
An investigative report released last year revealed that former BBC reporter Martin Bashir used forged documents to gain access to Princess Diana for the interview.
Bashir had presented fake payment documents to Jephson and another royal official.
These should prove that Diana was spied on by people around her.
The princess, who was considered paranoid and is said to have suspected rivals and conspiracies against her everywhere, felt vindicated by this - and unpacked.
The BBC later covered up their reporter's misconduct.
In 1995, the prime-time exclusive talk drew around 23 million people in Great Britain in front of their television sets.
The princess, who is already separated from Prince Charles but not yet divorced, described at the time how she felt left alone and sabotaged by the royal family.
And she disclosed her husband's affair with his now-wife Camilla Parker-Bowles.
"There were three of us in this marriage," Diana said to the camera.