UK journalist: James Murdoch approved settlement

A journalist has told a British parliamentary committee that News Corp. executive James Murdoch, son of media mogul Rupert Murdoch, approved an out-of-court payment to settle a controversial phone hacking case.

News of the World editor Colin Myler said Tuesday that James Murdoch was told that 700,000 pounds ($1.1 million) would be paid to settle a case against the company.

The suit was brought by Gordon Taylor, head of the Professional Footballers' Association, one of the targets of the hacking.

"James Murdoch was apprised of the situation and agreed with our recommendation to settle. It was an agreed collective decision," Myler said.

The allegations against the News of the World, part of Rupert Murdoch's News Corp. empire, are part of a wider scandal concerning journalistic abuses being investigated by the parliamentary committee on Culture, Media and Sport.

The News of the World's royal editor and a private investigator were jailed in 2007 for hacking into the phones of employees of the royal family.

The rival Guardian newspaper claims this practice was widespread among journalists at the News of the World.

James Murdoch is News Corp.'s chairman and chief executive for Europe and Asia and also executive chairman of News International.