We take a look at the major moments in the phone-hacking allegations...
8 August 2006 - Detectives arrest News of the World royal editor Clive Goodman and private investigator Glenn Mulcaire over allegations they hacked mobile phones of members of the royal household.
26 January 2007 - Goodman is jailed for four months and Mulcaire for six months. Editor Andy Coulson resigns.
31 May 2007 - David Cameron announces Mr Coulson as the Conservative Party's director of communications.
9 July 2009 - Crown Prosecution Service announces a review of material provided by police.
21 July 2009 - Mr Coulson tells MPs on the Culture, Media and Sport Committee that things went "badly wrong" under his editorship.
24 February 2010 - A report by the committee finds no evidence that Mr Coulson knew phone-hacking was taking place.
5 September 2010 - The New York Times publishes a long article claiming Mr Coulson knew his staff were carrying out illegal phone hacking.
21 January 2011 - Mr Coulson stands down as Downing Street communications chief.
26 January 2011 - Scotland Yard launches a fresh inquiry. The paper sacks its assistant editor (news), Ian Edmondson.
5 April 2011 - Scotland Yard detectives arrest Edmondson and the paper's chief reporter, Neville Thurlbeck. They are later bailed.
8 April 2011 - News International apologises "unreservedly" to a number of public figures.
21 June 2011 - Football pundit Andy Gray accepts 20,000 in damages. Actress Sienna Miller is paid 100,000.
4 July 2011 - Claims emerge the mobile phone of murdered schoolgirl Milly Dowler was hacked after she had gone missing.
5 July 2011 - News International chief executive Rebekah Brooks says she is "appalled and shocked" that the teenager's phone was hacked, while the Prime Minister calls it a "truly dreadful act".
6 July 2011 - David Cameron announces a public inquiry into the scandal. Media mogul Rupert Murdoch describes the phone hacking allegations as "deplorable and unacceptable" but backs Rebekah Brooks to continue as chief executive. Reports emerge that relatives of soldiers killed in action may have been victims of phone hacking.
7 July 2011 - Royal British Legion drops News of the World as its campaigning partner. News International chairman James Murdoch tells staff this Sunday's issue of the News of the World will be the last edition of the paper.