A Web site that falsely reported James Dolan was considering scrapping Radio City’s Christmas Spectacular starring the Rockettes has settled a defamation lawsuit by Madison Square Garden and posted an online mea culpa today.

“We now realize that we could have done more to ensure that all relevant facts were included in the article,” the editor’s note on the CityFile Web site said. “We have retracted the article and removed it from our Web site.”

“Like all New Yorkers we’re extremely pleased to hear that the legendary show will remain an institution in this city for many years to come,” the statement said.

The lawsuit, filed in Manhattan Supreme Court, had accused CityFile of acting maliciously when it ran the July 24 article that claimed the legendary holiday show faced cancellation due to financial reasons.

A spokesman for the Garden declined comment on the terms of the confidential settlement.