The article stated that Bishop Seamus Hegarty, along with Bishop Edward Daly and the alleged abuser, were named as defendants in an out-of-court settlement.
The settlement related to an eight-year-old girl who was allegedly sexually abused over a ten-year period starting from 1979.
It is reported that the church handed over £12,000 in compensation to the victim and that she also received a letter of apology from her alleged abuser, who was a priest from the Derry Diocese.
The compensation and letter were subject to a confidentiality agreement between the parties.
A spokesman for the Derry Diocese said no immediate response would be forthcoming as church records would have to be checked.
According to the Belfast Telegraph, Dr Hegarty was one of three defendants named in the civil legal action.
The case was settled in 2000 without admission of liability by the church, but with a payment of £12,000 to the alleged victim and a handwritten letter of apology from the priest.
In addition to contacting a spokesperson for the Derry Diocese, the Belfast Telegraph also contacted a spokesperson for the Diocese of Down and Connor.
Fr Edward McGee responded by saying: 'Since the implementation of the Framework for the Church's Response to Child Abuse in 1996, and more recently in our present Safeguarding Children - Standards and Guidance for the Catholic Church in Ireland (2009), it is policy that any concerns of a safeguarding nature are passed onto the relevant statutory authorities and confidentiality cannot be assured either for the perpetrators of child abuse or the survivors.
'This process is managed by the Safeguarding Office, which is run by professionals in the field of child protection and safeguarding and who regularly liaise with the inter-agency forum to ensure the care and protection of our young people.'
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SIC: RTÉ