Diaz close to settlement with tabloid

Cameron Diaz is reportedly close to agreeing a settlement in her $30m (€23.5m) lawsuit against an American magazine that accused her of cheating on Justin Timberlake.

The National Enquirer last year claimed Diaz was having an affair with Shane Nickerson, the married producer of her MTV show Trippin'.

It printed pictures of the pair leaving a recording studio and hugging.

Diaz immediately sued for slander and libel, accusing the tabloid of turning "an innocent, insignificant and non-memorable occurrence involving two co-workers and friends (into) a sensationalistic, scandalous and accusatory story which was completely false."

Nickerson's wife and mother-in-law joined Diaz as co-plaintiffs alleging Enquirer reporters caused them emotional distress.

According to court documents revealed by E! Online the parties are close to settlement. A summary of proceedings reads: "Counsel report that settlement discussions have been productive and that parties are close to a settlement."