Amanda Ramsay, who hopes to become the Labour candidate in Bristol South at the next general election, confirmed to Bristol24-7 she had settled with the publisher.
A report in The Independent this morning suggested the compensation figure could be as high as £20,000 but Ms Ramsay said that she was legally unable to discuss the details of the settlement.
The settlement comes as News International (NI) is due to attend a case management hearing at the High Court in London on Friday at which the company is expected to make a series of apologies to victims with whom it has settled civil claims over hacking.
In total, almost 250 claims have been settled. NI announced last week that a compensation scheme set up to hear claims without going to court would close on 8 April, having so far settled 60 out of 254 claims.
Speaking to Bristol24-7 this morning, Ms Ramsay said she could only speculate on why she had been hacked by journalists from News International – publishers of The Sun and the now-closed News of the World.
She said notes in the notebook of disgraced investigator Glenn Mulcaire pointed to her phone messages being hacked in 2001 and 2004.
She added that she had felt “very alone” when police contacted her in September 2011 to say she could be a victim.
“In 2001 I started working for Graham Stringer. Soon after, I thought I was being followed and could hear clicking on my phone. At first I thought I was being tapped by MI5, as part of their security checks. Now I wonder if it was to do with the hacking,” she said.
“My own political career was taking off, so I don’t know if the journalists thought I was someone to keep an eye on.
“I was burgled, had my laptop stolen and my mobile phone disappeared from my desk at Parliament. You can’t help but put two and two together.
“I felt very alone. It was very hard to talk about when police contacted me in September 2011. It takes you back to all those moments when you felt you were going mad.”
An NI Group Ltd spokesman said: “We have been keen from the beginning to settle these cases with minimum delay and minimum stress for all involved.”