Bob Bird defended the allegations about Mr Sheridan

Bob Bird, when questioned by Mr Sheridan at the Court of Session, also denied being a "chancer".

Mr Sheridan is suing the newspaper for �200,000 over a series of articles about his sex life. He said the claims were untrue.

However, the Sunday tabloid said what it published was substantially true.

Mr Bird told the jury his paper's claims about the sex life of the politician were "100% true".

He was asked by Mr Sheridan whether Fiona McGuire, the former escort girl at the centre of the case, wanted her story to be published.

We have done lots of stories about politicians and celebrities and sex scandals which have been true and have brought many a career to an end in politics Bob Bird News of the World Scotland

Mr Bird said: "Opinions whether it should be printed did vary.

"She went a bit cold at one stage and did not want to co-operate."

The editor confirmed that Miss McGuire, who said she had a four-year affair with the married MSP, signed a contract with the tabloid and was paid �20,000 for her story.

At the start of his examination, Mr Sheridan referred to a comment by Douglas Wight, then Scottish news editor, in a taped interview with Miss McGuire in which he spoke of his paper as "chancers".

Mr Sheridan said: "Are you a chancer, Mr Bird?"

He replied: "No."

Mr Sheridan said: "Does your newspaper tell lies about people, Mr Bird?"

The editor again replied: "No."

During an exchange about previous legal cases involving the tabloid, Mr Bird defended the paper.

Father-in-law

He said: "We have done lots of stories about politicians and celebrities and sex scandals which have been true and have brought many a career to an end in politics."

In another exchange, Mr Bird was asked if he was satisfied that the Fiona McGuire story, which was published on 14 November, 2004, was accurate.

Mr Bird replied: "We 100% believe it is a true account."

Earlier, Mr Sheridan's father-in-law told the court that the Scottish Socialist MSP was with him when he was alleged to have taken part in group sex in a hotel.

Gus Healy said his son-in-law was with him in early June 2002

Angus Healy, 69, said Mr Sheridan was with him on 7 June and 14 June, 2002 - the dates he was alleged to have been involved in the sex sessions.

Two women, Anne Colvin and Helen Allison, have testified that they saw Mr Sheridan having group sex in the Moat House Hotel in Glasgow on either the first or second Friday in June 2002.

Mr Healy, from Cardonald, Glasgow, said Mr Sheridan accompanied him to the stag night of Andrew McFarlane, a week before he married his daughter Gillian.

The retired social care worker said Mr Sheridan was with a party which went to the pensioner's local pub, on to a restaurant and then back to the pub.

He told the court that the Glasgow MSP was in his company until midnight when the group went their separate ways.

Mr Healy testified that the following Friday, Mr Sheridan and his wife Gail visited his home to collect his sister, who had flown to Scotland from Miami on the eve of Gillian's wedding.

The witness said Mr Sheridan arrived at about 2030 BST and left at about 2200 BST with his sister, who was due to stay with Mr Sheridan and his wife for a week.