Top model agency Elite has settled its High Court libel action over a BBC undercover documentary.

The writ concerned an episode of MacIntyre Undercover aired on BBC One in November 1999.

The action centred on disputed allegations of under-age sex and drugs in the programme.

Adrienne Page QC for Elite told Mr Justice Eady sitting at the London court that matters had been settled late on Sunday night.

The hearing was expected to last four weeks without a jury present.

Miss Page said: "The terms of settlement are to remain confidential as between the parties."

Agreed statement

In an agreed statement, the BBC acknowledged that Elite, as an organisation, "warns and seeks to protect its young teenage models, whether from sexual exploitation or other potential dangers to them (such as from illegal drugs) and that this was not reflected in the programme.

"In this respect Elite was therefore unfairly portrayed."

It added: "The BBC recognises that although the Undercover investigation revealed no sexual exploitation by Elite executives of its models or Elite Model Look contestants, Elite accepts that sexual remarks made by some of its executives were clearly inappropriate."

The BBC has agreed never to repeat the programme and both sides have agreed that no further statements will be made.