The Sun agreed to pay undisclosed damages and Osbourne's legal costs.
Osbourne took the paper to Britain's High Court over an October 2007 story that claimed she was "driving her frail husband Ozzy Osbourne to destruction."
Her lawyer, John Kelly, said the unfounded allegations were "extremely distressing, hurtful and damaging."
The Sun's lawyer, Patrick Callaghan, said the newspaper sincerely apologized and accepted that the claims were untrue.
