Greens senator Sarah Hanson-Young has won a defamation case against men's magazine Zoo Weekly for photoshopping her head onto a lingerie model's body.

The image appeared in a July 2012 article titled Zoo's Asylum Seeker Bikini Plan.

In the article, the magazine offered to house a boatload of asylum seekers in its office if Senator Hanson-Young agreed to a bikini shoot.

Senator Hanson-Young said she hopes her legal victory will set an example for other young women to take a stand against sexism.

"I'm very, very relieved this has been resolved but what I'm more thankful of is I have been able to show young women across this country that sexism does not have a place in our society," she said.

"It shouldn't have a place when we deal with women in the public eye or, indeed, female politicians.

"It does exist and it needs to be stamped out and stood up to when it occurs.

"Proudly I can say I took the decision to draw a line in the sand and I've won."

The magazine has published an apology on its website acknowledging the article was in "poor taste", as part of an agreed settlement.

"We accept that the article was in poor taste," the statement said.

"Senator Hanson-Young has made a significant contribution to asylum seeker policy in this country.

"We sincerely apologise for any hurt we caused."