The owner of the popular British newspaper, News of the World has reportedly extended an unreserved apology for hacking phones, besides saying that a compensation fund would be set up by it for serving the cause.

To be preciser, the News International owned by British media tycoon, Rupert Murdoch said that it admitted to the liability in certain cases charged against the News of the World, the top selling newspaper of the United Kingdom.

The renowned people that the News of the World is believed to be offering a settlement include actor Sienna Miller.

The apology from the newspaper has come three days after the police had detained the chief reporter and a former editor of the Sunday tabloid on the suspicion of having illegally intercepted voice mail messages in the mobile phones.

News International, which is also the publisher of the Sunday Times, The Times and The Sun has admitted that the first internal probe into the hacking had not been successful in uncovering vital documents.