The man wrongly accused and later cleared of the murder of Rachel Nickell in 1992 has told the BBC that he has been awarded Ј706,000 in compensation.
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Ms Nickell, 23, was stabbed 49 times in a frenzied daylight attack on Wimbledon Common in front of her child.
Mr Stagg was cleared of any involvement in the killing in 1994. Robert Napper, 41, was charged with Ms Nickell's murder last year and is awaiting trial.
Mr Stagg's lawyer Alex Tribick said the payout from the Home Office was set by an independent assessor, Lord Brennan.
Mr Stagg, of Roehampton, south-west London, was acquitted of the murder when the judge threw out the case on the grounds police had used a "honey trap" plot to encourage him to confess.
The case was widely seen a low point in the recent history of the Metropolitan Police.
Mr Stagg, who lived nearby and who walked his dog on the common, spent 13 months in custody.
He always maintained his innocence and later passed a lie detector test.
Mr Tribick said the payment would help his client to "try and rebuild his life".
He said the offer was made in a letter from the Office of Criminal Justice Reform following an application for compensation.
Mr Tribick explained that Lord Brennan had submitted a "carefully considered and reasoned" 70-page document supporting the award.
Mr Tribick added: "This is an offer that has been made and that offer has been accepted."
(BBC)
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