A ruling at the High Court this morning found that the International Automobile Federation (FIA) president's privacy had been breached by the News of the World.

The paper printed a story alleging that an orgy he took place in had Nazi overtones.

While he admitted he had taken part in the sado-masochist orgy with five prostitutes – one of whom filmed it – at the London flat, he denied any suggestion that there were Nazi elements to it, and pursued the newspaper as a result.

Mr Mosley is the son of 1930s fascist leader Sir Oswald Mosley.

But Mr Justice Eady ruled in favour of Mr Mosley and awarded him £60,000 in damages, which he will now donate to the FIA Foundation for research into road safety.

Outside court the Formula 1 mogul, who steadfastly refused to step down from his position despite calls for his head, released an emotional statement.

He told waiting reporters: "This judgement has nailed the Nazi lie upon which the News of the World sought to justify their disgraceful intrusion into my private life.

"By law we are all entitled to have our privacy respected.

"The News of the World invaded my privacy, dreamt up the most offensive headline possible, and decided that I should not be contacted before publication to prevent me asking the Court for the injunction I would have been entitled to.

"They and their lawyers have then conducted this case so as to cause maximum embarrassment in the hope that I would be discouraged from continuing.

"I needed a strong judgement to make it absolutely clear that what the News of the World did was wrong.

"Obtaining that in the full glare of the media has been extremely difficult but I am delighted that we have achieved what we set out to do.

"As I promised at the outset, the damages will go to the FIA Foundation to further their work for road safety and the environment.

"Finally, I would like to thank all those who have supported me during this difficult period."

The News of the World now faces a total costs bill of around £850,000, with the judge ordering an interim payment of £200,000 on account.

Mr Mosley's costs amounted to about £450,000 with the newspaper's coming to £400,000.

In his ruling Mr Justice Eady concluded there was nothing to suggest that the orgy "intended to be an enactment of Nazi behaviour or adoption of any of its attitudes". He added: "I see no genuine basis at all for the suggestion that the participants mocked the victims of the Holocaust."

James Price QC had told London's High Court that the "gross and indefensible intrusion" by the tabloid in its role as a titillating Peeping Tom was made substantially worse by the false suggestion that Mr Mosley was playing a concentration camp commandant and a death camp inmate.

The newspaper's editor, Colin Myler, said he believed the story was one of "legitimate public interest and one that I believe was legitimately published" and that it was "absolutely not true" that the newspaper had fabricated the Nazi aspect.