Campbell was left furious after editors at The Daily Telegraph published a story suggesting she was planning the controversial event for Russian billionaire Vladislav Doronin's 50th birthday party in Jodhpur in November.
She sued for libel and was awarded "substantial" damages following a hearing at London's High Court on Thursday. She also received an apology from the newspaper's editors.
In a statement read out by her lawyer at the court, Campbell says: "There were never plans to hold an elephant polo tournament, so the allegations should not have been published. However I am glad that the matter has been resolved and I accept the newspaper's apology."