The Daily Mail has agreed to pay first lady Melania Trump damages after it published a story alleging the former model had been an escort in the 1990s.

The news outlet will pay Trump about $2.9 million in damages and costs, CNN reported Wednesday.

"We accept that these allegations about Mrs. Trump are not true and we retract and withdraw them. We apologize to Mrs. Trump for any distress that our publication caused her," the Daily Mail and Mail Online said in a statement.

Trump filed a lawsuit against the Mail Online in September seeking $150 million in damages. The lawsuit was later moved to New York after a Maryland judge dismissed the suit.

Trump also sued the Daily Mail in London.

In August, the Daily Mail published a story questioning Trump's past romantic relationships, her modeling career and immigration story. The news outlet cited a story from Trump's native Slovenia that said the modeling agency she worked for doubled as an escort service.

Several outlets retracted and apologized for repeating the Daily Mail's claims. The Daily Mail also removed the story from its website.