One Nation MLC Mark Latham has settled a defamation suit with a University of NSW student he accused of "plotting to kill senior federal MPs".

PhD student Mohamed Nizamdeen, 26, was suing Mr Latham in the Federal Court over multiple tweets from the former Labor leader in August last year that he alleged were defamatory.

Mark Latham has settled a defamation claim brought against him by a UNSW student. Credit:Sylvia Liber

Mr Nizamdeen had been charged with terrorism offences following the discovery of a notebook containing potential plans to attack Sydney landmarks and plots to kill former prime minister Malcolm Turnbull and his former deputy Julie Bishop.

But the accusations were later dropped and Mr Nizamdeen was cleared of any wrongdoing, with police instead charging Arsalan Khawaja, the brother of Australian cricket star Usman Khawaja, over the plot which turned out to be fake.