The Duke of Sussex has settled his high court legal action at the eleventh hour against the publisher of the Sun, News Group Newspapers (NGN).

NGN offered “a full and unequivocal apology” to Prince Harry “for the phone hacking, surveillance and misuse of private information by journalists and private investigators instructed by them” at the News of the World.

It will also pay “substantial damages” as the two sides settled their legal claim, Harry’s barrister, David Sherborne, has told the high court.

On Wednesday morning, Sherborne said: “I am pleased to announce to the court that the parties have reached an agreement.

“As a result of the parties reaching an agreement I would ask formally that the trial is vacated.”

He continued: “NGN offers a full and unequivocal apology to the Duke of Sussex for the serious intrusion by The Sun between 1996 and 2011 into his private life, including incidents of unlawful activities carried out by private investigators working for The Sun.

“NGN also offers a full and unequivocal apology to the Duke of Sussex for the phone hacking, surveillance and misuse of private information by journalists and private investigators instructed by them at the News Of The World.

“NGN further apologises to the duke for the impact on him of the extensive coverage and serious intrusion into his private life as well as the private life of Diana, Princess of Wales, his late mother, in particular during his younger years.”

He continued: “It is also acknowledged, without any admission of illegality, that NGN’s response to the 2006 arrests and subsequent actions were regrettable.”

Tom Watson, a former deputy leader of the Labour party who was also taking legal action against the publisher, also settled his claim.

After two earlier requests for adjournments on Tuesday, thought to be related to settlement discussions, Mr Justice Fancourt refused a third request for a delay as both sides had had “ample time to seek to resolve their differences”.

Following a short break, lawyers for both sides asked to be allowed to challenge the judge’s decision to not provide a further delay at the Court of Appeal. While Fancourt denied the request, the lawyers could go to the Court of Appeal itself, meaning Tuesday’s hearing was adjourned in any event.

Several other high-profile figures have settled their cases against NGN, with 39 people settling claims between July and December last year.

In April, the High Court heard that the actor Hugh Grant had settled his case against NGN because of the risk of a £10m legal bill if his case went to trial.

Sherborne said at that hearing that “the Duke of Sussex is subject to the same issues that Sienna Miller and Hugh Grant have been subject to, which is that the offers are made that make it impossible for them to go ahead”.