Sorrell brought a case against Benatti and his colleague Marco Tinelli and the Italian media company FullSix Spa, in the High Court for libel and breach of privacy.
He accused them of disseminating blogs containing a "host of libels" and a "vicious" jpeg image of himself and female executive Daniela Weber, chief operating officer of WPP Italy, labelling them "the mad dwarf and the nympho schizo".
The case was ended by a deal between the two sides in which Sorrell walked away with £120,000 in damages, although Benatti, Tinelli or FullSix took no liability for the blogs or the jpeg image.
The WPP board met at the beginning of this month to decide how much of Sorrell's costs the company should bear, and have decided to cover all the costs. According to WPP's spokesman the board came to the decision without Sorrell's involvement and on the recommendation of the company's audit committee, chaired by Paul Spencer.
The spokesman said the £800,000 figure took account of the fact that Sorrell had paid the £120,000 damages he was awarded back to WPP.
Sorrell's case hinged on complex forensic computer evidence, which was challenged by the defence throughout the trial.
Weber, the chief operating officer of WPP Italy, with whom it was alleged that Sorrell once had a personal relationship, also sued for invasion of privacy. She accepted £30,000 in a final settlement.
Sorrell and Benatti are to clash again later this year in a separate case brought by Benatti, disputing the termination of his contract with WPP in January last year.
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