Perth barrister Lloyd Rayney has received one of Australia's largest payouts after being defamed when police named him as the "prime" and "only" suspect in the murder of his wife, Corryn, more than 10 years ago.

Today Supreme Court justice John Chaney awarded Mr Rayney a total of $2.62 million, including $1.25 for the income he lost over a three-year period — from when the comments were made in September 2007 to December 2010, when he was charged with her murder.

Lloyd Rayney has won a defamation battle against the State of WA. ( ABC News: James Carmody )

The total includes the $600,000 payment Justice Chaney last week ruled Mr Rayney should receive for the non-economic loss he suffered to compensate him for "the damage to his personal and business reputation, personal hurt and distress" caused by the defamation.

Lloyd Rayney's defamation payout $600,000 for non-economic losses (awarded last week)

$600,000 for non-economic losses (awarded last week) Plus $246,180 interest for the 10 years since the comments were made

Plus $246,180 interest for the 10 years since the comments were made $1.249 million for economic losses

$1.249 million for economic losses Plus $527,000 interest for the 10 years since the comments were made

Plus $527,000 interest for the 10 years since the comments were made Grand total of $2.62 million

Mr Rayney has always denied any involvement in his wife's death.

Police presumed guilt: judge

Corryn Rayney's body was found buried in Kings Park in August 2007, more than a week after she vanished after attending a boot-scooting class in Bentley.

Mr Rayney stood trial in 2012 for her murder and was found not guilty — a verdict upheld on appeal.

Mr Rayney was charged in 2010 with his wife's murder but was later cleared at trial. ( AAP: WA Supreme Court )

Last week Justice Chaney found the comments in question, by senior police officer Jack Lee, had "in their entirety bore the imputation that the plaintiff [Mr Rayney] murdered his wife".

But Justice Chaney found police did not have "reasonable grounds" to suspect Mr Rayney had killed his wife.

Justice John Chaney delivers his ruling in Lloyd Rayney's long-running defamation case. ( Supplied )

In his 332-page judgement, Justice Chaney was highly critical of the police, finding that senior officers involved in the investigation into Ms Rayney's murder "had formed a prejudicial view" of Mr Rayney and had "taken the approach of assessing [his] actions and words against an assumption of guilt".

Mr Rayney had sought a payout of more than $10 million dollars, arguing the defamatory comments had affected his income for the entire 10 years since they were made.

However Justice Chaney found the comments only affected his income for the three years from when they were made to when he was charged with murder, saying any losses after that point were "entirely attributable to other causes".

Rayney 'accosted' by member of public

Mr Rayney was not in court for the decision, but his lawyer Martin Bennett said the sum was "well in excess by a factor of millions" of the highest defamation payout ever awarded in WA.

Mr Rayney's lawyer Martin Bennett said the payout was "somewhat disappointing". ( ABC News: Sarah Collard )

Mr Bennett said Mr Rayney continued to suffer the effects of the defamatory comments, claiming he was "accosted" by a member of the public only last week.

He said it was "somewhat disappointing" the payout only covered the three-year period from 2007 to 2010.

"His honour found that although the damage for the defamation in a general sense continued, it was not causative of economic loss, so that's a matter Mr Rayney is disappointed about, but he's generally very pleased to be vindicated," he said.

A final decision is yet to be determined on the sum to be paid by the state to cover Mr Rayney's legal costs, but Mr Bennett said the figure was likely to be more than the sum awarded to Mr Rayney for damages.

WA Treasurer Ben Wyatt said a provision had been made for the payout in the state budget mid-year review released today, but would not reveal the size of the figure.

"Clearly I'm not happy about it," Mr Wyatt said.

Mr Rayney resumed working as a barrister in 2016 after fighting off attempts by the Legal Practice board to cancel his practising certificate.

Australia's largest defamation payout of $4.5 million was awarded in September to Hollywood actress Rebel Wilson after she was defamed by magazine publisher Bauer Media.

Western Australia's previous highest payout was a total of $700,000 awarded to three businessmen against a blogger.