Former Liberal staffer Bruce Lehrmann's bid to take out a restraining order against a journalist for alleged stalking has been dismissed.

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Lehrmann had launched legal action in Hobart Magistrates Court against Karleigh Smith, a senior Daily Mail reporter based in NSW.

A story titled "We found the despised party boy hiding at the end of the Earth", about Lehrmann living in Tasmania, was published by Daily Mail Australia in July with Smith's byline.

Smith's lawyer Nic Edmondson told the court on Thursday the parties had agreed to resolve the matter and it had been dismissed.

Magistrate Jackie Hartnett thanked the parties for their "hard work"

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