Actress stayed true to her scent

Nicole Kidman is enjoying the sweet smell of victory ... over a newspaper that reported she had breached her contract with Chanel No. 5.

"The Golden Compass" actress has accepted damages from a British newspaper that published a story claiming that she had breached provisions in her promotional contract with the popular perfume, report news sources.

Last month, the Daily Telegraph reported that even though Kidman had a contract with Chanel No. 5, she was seen carrying a bottle of a rival fragrance while she was in the UK promoting "Compass." As a result, Kidman's lawyer John Kelly claimed that she suffered embarrassment and distress.

Not only will the newspaper have to pay up, but it also discovered that its source for the story was fictional. The "substantial" damages will be donated to the United Nations Development Fund for Woman.

Kidman, 40, currently portrays the magisterial Marisa Coulter in "The Golden Compass," based on the fantasy novel by Philip Pullman. Her other recent credits include "Margot at the Wedding" and "The Invasion."