In the Sunday tabloid's October 13th edition, it was quoted that Dougie had 'been put on a three day week in a cost-cutting exercise by the Premiership club'.
However, after Hammers reacted strongly to the ridiculous and untrue allegations, the paper have now agreed to print a full apology in this weekend's edition and will also pay an undisclosed sum of money to The Richard House Trust - one of the many charities supported by West Ham United - as compensation for damages.
Company Secretary and Head of Legal department Scott Duxbury said: "We are very glad that The People have admitted to their wrong-doing and hopefully this will be the last time we have to face such incidents in tabloid newspapers.
"The allegations directed at West Ham were completely untrue and damaging, not only to the club, but to individuals like Dougie Robertson, who had to face uneccessary embarrassment over the whole affair.
"We saw it as being a cheap shot at the club during a time when things were not going well on the pitch, and felt strongly that we should take action to ensure that newspapers know they will not get away with printing false claims about West Ham United.
"We are satisfied that a full apology will be printed in the newspaper, and also glad that some good can come out of the matter by way of The Richard House Trust receiving compensation that will benefit the charity."