Former attorney-general Christian Porter has dropped legal action against the national broadcaster. 

Mr Porter sued the ABC and journalist Louise Milligan for defamation following the publication of an article that reported a historical allegation of rape against a serving Cabinet minister.

After he outed himself as the subject of the article, Mr Porter repeatedly and strenuously denied the allegations contained therein.

Just a day before the Federal Court was to begin hearings, Mr Porter decided to discontinue his defamation action.

Much of the ABC's defence was to be based on truth and qualified privilege, but had to be suppressed pending a planned two-day hearing before Justice Jayne Jagot.

It all came after Mr Porter lost his barrister Sue Chrysanthou SC last week.

Ms Chrysanthou had taken on Mr Porter’s case, but had previously given advice on issues related to the case to Joanne Dyer, a friend of the deceased complainant.

There was great concern that Ms Chrysanthou had information that had been gathered in a confidential meeting, which could be of benefit to Mr Porter.

Justice Thomas Thawley ruled that Ms Chrysanthou had a conflict and she was forced to step aside.

Reports say the ABC then entered into mediation with Mr Porter, which led to the case being dropped.

Mr Porter has characterised it as a “humiliating backdown” over the “sensationalist” and “one-sided” story.

The ABC says it will amend the original articles, but keep them publicly available, with a note saying it did not intend to suggest Mr Porter had committed the alleged offence. 

“The ABC stands by our investigative and public interest journalism, which is always pursued in the interests of the Australian community,” a spokesperson said.

“The ABC stands by Louise Milligan, one of Australia’s foremost and most awarded investigative journalists, and all our journalists in their independent and brave reporting on matters about which Australians have a right to be informed.”