Actor John Jarratt has settled his defamation case against Sydney tabloid The Daily Telegraph over an article reporting the reaction of his accuser after a NSW District Court jury found him not guilty of rape.

In an apology published on its website on Sunday, the Telegraph said "some readers" may have believed a July 7 article headlined "Jarratt accuser 'broken'" implied the Wolf Creek star was guilty of a crime.

John Jarratt has settled his Federal Court defamation case against The Daily Telegraph. Credit:Simon Schluter

"This is incorrect. Mr Jarratt was fully acquitted of the charge after a unanimous 'not guilty' verdict by a 12 person jury in July," it said. "We apologise to Mr Jarratt for the hurt and embarrassment caused by the publication of the article."

On July 5, a NSW District Court jury found Mr Jarratt not guilty of raping his female housemate in Sydney's east more than 40 years ago.