Mark Latham settles defamation case

Politician Mark Latham has reached a confidential settlement with a man cleared of terrorism, who then sued him for defamation.

Police dropped the case against Mohamed Nizamdeen, 26, after it emerged the UNSW PHD student was not responsible for a notebook which contained plans to kill former Prime Minister Malcolm Turnbull, former foreign minister Julie Bishop and attack the Sydney Harbour Bridge.

Authorities have since accused the brother of Australian cricketer Usman Khawaja, Arsalan Khawaja of creating the bogus list.

Five months later two tweets on Mark Latham's account remained online.

A hearing was due to start this week but 9News understands the parties reached a confidential settlement.

While the amount is secret, industry experts say the damages and court costs would amount to more than $100,000.

Mr Nizamdeen left for Sri Lanka after he was cleared, his lawyer Moustafa Kheir of Birchgrove Legal released a statement today.

"We are pleased to announce that the claim against Mr Latham has now settled."