The High Court of Justice said in a statement that Express Newspapers had agreed to pay the libel damages to the group, who were having dinner with Kate and Gerry McCann when their daughter disappeared in Portugal on May 3, 2007.
"We apologize to Jane Tanner, Russell O'Brien, Fiona Payne, David Payne, Matthew Oldfield, Rachael Oldfield and Diane Webster to whom we have agreed to pay substantial damages which they will donate to the Find Madeleine Fund," the group's Daily Express and Daily Star said in their Thursday editions.
The damages paid to the so-called "Tapas Seven" follow a payment the Express Group made to Madeleine's parents for articles suggesting they caused the death of their daughter and covered it up.
The McCanns were paid 500,000 pounds ($861,700) in March 2008.
Portuguese prosecutors have cleared them of any involvement in their daughter's disappearance and police closed their investigation in July.
The girl went missing soon before her fourth birthday during a holiday with her family in the southern Portuguese resort of Praia da Luz after her parents left her sleeping in their apartment when they went for dinner at a nearby tapas restaurant.
