43-year-old Vicky Phelan said the money "will mostly be spent on buying me time"

A terminally ill mother of two, who was wrongly told she didn't have cancer in 2011, has settled her case against a US lab for €2.5m.

43-year-old Vicky Phelan, who lives in Annacotty, Co Limerick, was given less than a year to live in January.

In 2011, she was told there were no abnormalities found in the smear sample sent to Clinical Pathology Laboratories Inc in Austin, Texas.

But three years later, a review found the results were incorrect.

She was diagnosed with cervical cancer around the same time, but she only found out about that review last year.

In January, she was given between six and twelve months to live and she, along with her husband Jim, sued the lab and the HSE.

This morning, Mr Justice Kevin Cross was told the case against the lab had been settled for €2.5m with no admission of liability, and the case against the HSE could be struck out.

Afterwards, Vicky said the money would be used to prolong her life.

She said: "There are no winners here today. I am terminally ill, and there is no cure for my cancer.

"My settlement will mostly be spent on buying me time, and paying for clinical trials to keep me alive, and to allow me to spend more time with my children."

She added: "If I die, and I truly hope that won't be the case, the money will provide for my family."

€700,000 of today’s settlement has already been earmarked for the couple’s two young children.

After approving the settlement, Mr Justice Cross turned to face Ms Phelan and said: “if anyone can beat this, you can”.