Media mogul Rupert Murdoch’s News International has reached an agreement to pay £2 million to the family of murdered teenager Milly Dowler, whose phone was hacked for information at the behest of the now defunct News of the World tabloid.

Besides, Mr Murdoch is personally donating £1 million pounds to six charity organisations, as agreed earlier this year.

The settlement relates to the hacking of Milly’s phone messages in March 2002. Messages were deleted, which gave her family the false hope that she was still alive and accessing her voicemail.

The Dowlers have decided to donate Murdoch’s £1 million to six charity organisations representing causes close to Milly and those that support victims of crime.

The Dowler family yesterday said in a statement that nothing that has been agreed “will ever bring back Milly or undo the traumas of her disappearance and the horrendous murder trial earlier this year.’’

“The only way that a fitting tribute could be agreed was to ensure that a very substantial donation to charity was made in Milly’s memory. We hope that projects will be undertaken so that some good can come from this,” they added.

Mr Murdoch said in the statement: “When I met with the Dowlers in July, I expressed how deeply sorry I was for the hurt we had caused this family.”

“The behaviour that the News of the World exhibited towards the Dowlers was abhorrent and I hope this donation underscores my regret for the company’s role in this awful event,” he said.

Media mogul hoped that through “the personal donation something positive can be done in memory of their daughter.”

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