Giggs claimed the newspaper “misused” private information and said he was entitled to claim damages for distress and breach of a right to privacy enshrined in human rights legislation.
Mr Justice Tugendhat said Giggs’s claim for damages was unlikely to result in any “significant award” and concluded there was “no purpose” in allowing the litigation to continue.
Giggs, 38, sued after The Sun published an article about a relationship with reality television star Imogen Thomas — headlined “Footie Star’s Affair with Big Bro Imogen” — on Apr 14 last year.
A judge later ruled that Giggs should not be identified — but referred to as “CTB” — to protect his privacy.
In May, Liberal Democrat MP John Hemming used parliamentary privilege to name Giggs as the player involved in the case.
Giggs was subsequently named in the media and on the internet, even though the court order banning identification remained in place for several months.
He was first named in court earlier this year after a judge said the anonymity order was no longer needed.
Hugh Tomlinson, for Giggs, argued The Sun had misused private information in the article, in which Giggs was not identified.
He said Giggs was claiming damages for subsequent republication of information in other newspapers and on the internet, and argued his claim should go to trial.
Richard Spearman, for The Sun’s publisher, News Group Newspapers, said the article had reported Thomas’s relationship with a Premier League player and had not identified Giggs.
He said The Sun had behaved “properly” and was not responsible for what had happened after the article appeared, and said the damages claim was “dead in the water”.
Mr Justice Tugendhat yesterday sided with The Sun.