Geoffrey Rush holds the record for the largest defamation payout to a single person in Australia after The Daily Telegraph agreed to pay the actor almost $2 million for lost earnings, on top of an $850,000 payout, for a series of reports accusing him of "inappropriate behaviour" towards a female actor.

On Thursday, the Federal Court heard that lawyers for Mr Rush and Nationwide News, the publisher of the Telegraph, had agreed the Oscar winner should receive $1.98 million in damages for past and future economic loss resulting from the reports.

Geoffrey Rush outside the Federal Court in November. Credit:Peter Rae

The court heard Mr Rush had previously offered to settle the case for $50,000, plus costs, and an apology.

The $1.98 million figure is in addition to $850,000 in compensatory and aggravated damages, plus $42,302 in interest, that Federal Court Justice Michael Wigney previously awarded Mr Rush to vindicate his reputation and compensate him for the "personal distress and hurt" caused by the reports.