The defamation battle between former federal Labor MP Emma Husar and online publisher BuzzFeed will not proceed to a trial after the parties reached an out-of-court settlement.

The dispute was among the most bitterly-fought defamation battle ever heard in the Federal Court, which is emerging as the forum of choice for high-profile plaintiffs including MPs and celebrities.

After weeks of talks behind closed doors, Ms Husar's barrister, Sandy Dawson, SC, informed the Federal Court in Sydney on Monday that "the matter has settled".

Lawyers for BuzzFeed did not appear in court owing to a "crossing of wires" but Mr Dawson said the "form of the deed [of settlement] has now been agreed" and needed to be executed by BuzzFeed's US-based chief executive officer and chief financial officer.