LONDON (Reuters) - Prince Harry settled his lawsuit against Rupert Murdoch's News Group Newspapers (NGN) over alleged unlawful information gathering, his lawyer said on Wednesday.

Harry's lawyer said a deal had been struck after NGN agreed to pay significant damages and admitted Harry, younger son of Britain's King Charles, had been the victim of unlawful activity by the Sun and had suffered phone-hacking at the hands of the News of the World.

Harry and former senior lawmaker Tom Watson were both claimants in the case.

Below is a text of NGN's apology to the claimants:

"NGN offers a full and unequivocal apology to the Duke of Sussex for the serious intrusion by The Sun between 1996 and 2011 into his private life, including incidents of unlawful activities carried out by private investigators working for The Sun.

NGN also offers 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 News of the World.

NGN further apologises to the Duke for the impact on him of the extensive coverage and serious intrusion into his private life as well as the private life of Diana, Princess of Wales, his late mother, in particular during his younger years.

We acknowledge and apologise for the distress caused to the Duke, and the damage inflicted on relationships, friendships and family, and have agreed to pay him substantial damages.

It is also acknowledged, without any admission of illegality, that NGN's response to the 2006 arrests and subsequent actions were regrettable.

NGN also offers a full and unequivocal apology to Lord Watson for the unwarranted intrusion carried out into his private life during his time in Government by the News of the World during the period 2009- 2011.

This includes him being placed under surveillance in 2009 by journalists at the News of the World and those instructed by them. NGN also acknowledges and apologises for the adverse impact this had on Lord Watson's family and has agreed to pay him substantial damages.

In addition, in 2011 News International received information that information was being passed covertly to Lord Watson from within News International. We now understand that this information was false, and Lord Watson was not in receipt of any such confidential information. NGN apologises fully and unequivocally for this."

(Reporting by UK bureau; editing by Michael Holden)