The New Zealand Police have apologised to Dirty Politics author Nicky Hager from their 2014 investigation into the book and will pay damages and legal costs, a settlement document says.
Mr Hager had his home raided in 2014 as part of the investigation, with the High Court ruling in 2015 the warrant used was "fundamentally unlawful".
"As part of the settlement of Mr Hager's claims, the New Zealand Police wish to acknowledge the following breaches of Mr Hager's rights and to apologise for them," the document says.
"Police also now accept and acknowledge that in certain respects the search warrant was overly broad and should have contained conditions to address concerns raised to protect journalistic privilege."
Mr Hager received an apology and payout from police for an 'unlawful' 2014 raid on his Wellington home.
Source: 1 NEWS
The settlement document says police "accepted that they did not have reasonable grounds for the search, that they attempted to breach Mr Hager's journalistic privilege in multiple ways, and that they unlawfully obtained his private information from third parties including his bank".
"Police apologise unreservedly for these breaches of his rights."
Mr Hager is to receive substantial damages and also a substantial contribution to his legal fees.
"This sends a vital message that people can share important information with journalists with confidence that their identities will be protected," Mr Hager said in the statement.
Assistant Commissioner Richard Chambers released a statement to 1 NEWS which said: "Police confirm that an out of court settlement has been reached with Mr Nicky Hager regarding a search warrant executed on his property in 2014. Police acknowledge that the processes used to obtain the warrant and request other personal information about Mr Hager were unlawful, and have apologised to Mr Hager for this.
"The settlement includes costs and damages, details of which remain confidential between the parties. Police investigation processes have since been updated in consultation with the IPCA and the Privacy Commissioner."