British celebrity magazine Star has issued an apology to Robbie Williams for reporting he was secretly gay and has agreed to pay "substantial damages and costs" to the aggrieved singer.

The publication printed a feature titled "Did Robbie Have A Secret Gay Fling?" last year, claiming the "Angels" star had a sexual encounter with a man in the toilets of the legendary Hacienda club in Manchester, reports celebrity portal Femalefirst.

Williams was later alleged to have linked up with the same man at another club nearby - with the incidents supposedly taking place during his days with 1990s boyband "Take That".

The magazine has, however, apologised, saying, "We now accept that Williams was never involved in any incidents of this kind and that these allegations are untrue."