Published Thursday, 14 March 2013
John McAreavey, pictured last year during the murder trial in Mauritius. (© PA)
The newspaper also issued an unreserved apology to John McAreavey for using the "potentially misleading images".
The widower appeared in Belfast High Court on Thursday to hear the resolution to his defamation action.
He sued over an article which appeared during the trial of two men later acquitted of murdering his wife.
Michaela McAreavey, 27, was found dead in the honeymoon suite of the Mauritius hotel where she and her new husband John were staying, in January 2011.
Last year a trial found two hotel workers not guilty of murdering the only daughter of Tyrone GAA manager Mickey Harte.
Lawyer Michael Kealey, for the defendants Associated Newspapers (Ireland) Ltd, said the article, published in the paper on 25 June last year included stills taken from CCTV footage.
The Irish Daily Mail described the pair in the pictures as an "arguing couple".
"[The pictures] were presented in such a way as to potentially infer that they may have been John McAreavey and his late wife, Michaela," said Mr Kealey.
"In fact, the footage was of a German couple, as has been unequivocally accepted by the authorities in Mauritius."
Mr Kealey said the Irish Daily Mail acknowledged the "potentially misleading images were published at an extremely difficult and traumatic time for John McAreavey and caused him significant distress.
"The defendant unreservedly apologises to John McAreavey and very much regrets the distress caused by the publication of this material.
"The Irish Daily Mail is committed to supporting John McAreavey in his fight to ensure that those who were responsible for the brutal murder of his beloved Michaela are held to account for their actions."
It is understood Mr McAreavey was awarded a "substantial five-figure sum" in damages. Outside court, his lawyer Paul Tweed said the pictures could not have been published at a more difficult and sensitive time.
"Although John is satisfied with this categoric and comprehensive apology before the court this morning, together with the payment of appropriate damages and his legal costs, the article should not have been published in the first place,"
"However, John remains very grateful for the support he has received from the media, and he hopes that this will continue with a view to ensuring that absolutely no stone is left unturned in bringing those responsible for Michaela's murder to justice."