The Duke of Sussex and former Labour deputy leader brought legal action against Rupert Murdoch’s British newspaper group News Group Newspapers (NGN), claiming its journalists gathered information through unlawful means.
Harry vowed last month not to agree to a deal, though it was estimated he could have faced a legal bill of £10 million even if he had won at trial.
The High Court judge, Mr Justice Fancourt, rejected a third request for a delay, saying: “There comes a point where the parties have had ample time to seek to resolve their differences and have not done so.”
Mr Hudson said the legal teams for both sides “have been involved in very intense negotiations over the last few days and the reality is we are very close”.
Barristers David Sherborne, left, and Ben Hamer, centre, representing the Duke of Sussex, arrive at the Royal Courts of Justice on 21 January (Photo: Benjamin Cremel/Getty)But it has always denied any unlawful activity at The Sun, and the trial was due to be the first to examine specific allegations against the newspaper.
The High Court had been due to decide if any of the NGN articles were the product of unlawful information gathering, such as information being tricked or “blagged” out of phone companies by private investigators.
Prince Harry is determined to beat Rupert Murdoch - even if it costs him millions
Read MoreSeveral other high-profile figures have settled their cases against NGN, with 39 people settling claims between July and December last year.
Others who have settled cases include: actress Sienna Miller; ex-footballer Paul Gascoigne; comic Catherine Tate; radio presenter Chris Moyles; Spice Girl Melanie Chisholm; former Boyzone member Shane Lynch and actor Mathew Horne.
He also said that he had become “professional” at litigation, but hoped “to retire fairly soon in that regard”.
“In some cases, particularly those relating to The Sun, it has made commercial sense, and in accordance with common litigation practice, for the parties to come to a financial settlement without NGN accepting liability.
Lord Tom Watson arriving at the Rolls Building on 22 January (Photo: James Manning/PA Wire)
“There are two outstanding cases which have not managed to come to a resolution and are proceeding to trial next week, relating to Lord Watson of Wyre Forest and the Duke of Sussex.
“The duke alleges unlawful information gathering from 1996-2011. His allegations of mobile phone hacking have been struck out by the court so will not be part of the trial.
“His claim will be fully defended, including on the grounds that it is brought out of time.
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