Harry, 40, the younger son of Britain's King Charles, was suing the publisher of the Sun and the now-defunct News of the World at the High Court in London, alleging NGN unlawfully obtained private information about him from 1996 until 2011.
His lawyer said that a deal had been reached to settle the lawsuit.
The trial of the royal's case and a lawsuit from former senior lawmaker Tom Watson was due to start at London's High Court on Tuesday.
But Harry's lawyer said a deal had been struck with NGN agreeing to pay significant damages and that NGN had admitted he had been the victim of unlawful activity by the Sun and had suffered phone-hacking at the hands of the News of the World.
NGN offered "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 Sun, Harry's barrister told the High Court in London.
A widespread phone hacking scandal forced Rupert Murdoch to close News of the World in 2011. (AP PHOTO)
Harry's lawyer David Sherborne read a statement in court saying NGN offers a "full and unequivocal apology to the Duke of Sussex" for years of unlawful intrusion.
Harry's lawyer said a deal had been struck with NGN agreeing to pay significant damages and that NGN had admitted he had been the victim of unlawful activity by the Sun and had suffered phone-hacking at the hands of the News of the World.
It had also apologised for intruding into the private life of his late mother, Princess Diana.
In all the cases that have been brought against NGN since a widespread phone hacking scandal forced Murdoch to close News of the World in 2011, Harry's case got the closest to trial.
The case was one of three lawsuits Harry has brought accusing British tabloids of violating his privacy by eavesdropping on phone messages or using private investigators to unlawfully help them score scoops.
His case against the publisher of the Daily Mirror ended in victory when the judge ruled that phone hacking was "widespread and habitual" at the newspaper and its sister publications.
During that trial in 2023, Harry became the first senior member of the royal family to testify in court since the late 19th century, putting him at odds with the monarchy's desire to keep its problems out of view.
His feud with the press dates back to his youth, when the tabloids took glee in reporting on everything from his injuries to his girlfriends to dabbling with drugs.
Agencies
