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The Crown Prosecution Service and West Midlands Police will apologise "unreservedly" at a High Court hearing today for libelling Channel 4's Dispatches programme Undercover Mosque.
Legal sources said they will pay £50,000 damages and £50,000 costs for falsely claiming the documentary was "misleading" and would stir up racial hatred.
The documentary, screened last year, showed "preachers of hate" making remarks alleged to be homophobic, anti-Semitic and sexist.
Police were called in to investigate the clerics, but after six months dropped the inquiry and turned on Channel 4, asking prosecutors whether they could be charged for stirring up racial hatred.