The BBC, which has apologised "unreservedly" for the report, said it was working on the final details of a settlement with Lord McAlpine.

BBC: crisis: Lord McAlpine 'terrified by public hatred'

Correction 10 November 2012: The BBC has apologised unreservedly for broadcasting a report on Newsnight on 2 November over allegations of child abuse which transpired to have involved a case of mistaken identity.

BBC: North Wales abuse: Children's commissioner wants inquiry

The BBC unreservedly apologised for broadcasting the report.

BBC: 'Focus on abuse' amid BBC crisis, urges MP