"I am grateful for the opportunity to have worked with so many gifted people and am looking forward to my next venture," Regan, who filed a $100 million defamation suit last November, said in a statement.

Regan's ReganBooks imprint at HarperCollins published a long list of racy best sellers, including Jose Canseco's "Juiced" and Jenna Jameson's "How to Make Love Like a Porn Star." But she was fired in December 2006, less than a month after Murdoch canceled her plans to publish O.J. Simpson's allegedly fictional murder confession, "If I Did It." The book and a companion Fox television interview were greeted with widespread public outrage.

"Ms. Regan is a talented publisher who created many award-winning and best-selling books during her twelve and a half years at the company," the company said in a statement. "News Corp. thanks Ms. Regan for her outstanding contributions and wishes her continued success."

At the time of her firing, when she still had more than two years on her contract, News Corp. alleged that Regan made anti-Semitic comments to a company lawyer during an angry telephone conversation.

"This charge was completely fabricated," according to Regan's lawsuit.

"After carefully considering the matter, we accept Ms. Regan's position that she did not say anything that was anti-Semitic in nature, and further believe that Ms. Regan is not anti-Semitic," News Corp. said Friday.

Regan had also accused her former employers of asking her to lie to federal investigators about Bernard Kerik, the former New York City police commissioner who was once her lover, and had tried to smear her.

Regan said the smear campaign stems from her past intimate relationship with Kerik, who was police commissioner under former Mayor Rudolph Giuliani, and from the political agenda of News Corp.

Giuliani, a Republican, appointed Kerik police commissioner and recommended him to President Bush for secretary of the Department of Homeland Security. Kerik had to withdraw his nomination after it was revealed he had not reported the wages he paid to a nanny. He was indicted last November, days before Regan filed her lawsuit, on counts including accusations of lying to the White House and filing false income tax returns. He has pleaded not guilty to the charges.