Josh Hartnett has accepted 20,000 in libel damages over an allegation of a sexual dalliance in a public place and will donate the total to charity.

A British tabloid paper claimed that the Hollywood A-lister was caught on security footage enjoying a romp with a woman in the library of the Soho hotel.

Hartnett, who has been starring in a production of Rain Man in the West End, denied the story and his lawyer Graham Atkins told London's High Court the allegations were "entirely false." Adding that the young actor conducts himself in an appropriate and professional manner at all times.

Hartnett, who has appeared in films including Pearl Harbor, Black Hawk Down and 40 Days & 40 Nights, has been starring in Rain Man at London's Apollo Theatre since since August, and is due to close this month.

The defendant simply offered apologies for any distress, hurt and embarrassment caused by the article.