Former News of the World editor Andy Coulson knew about a "project" to hack phones, the paper's former royal editor has told the phone-hacking trial.
Clive Goodman answered "yes" when asked if his former boss knew the "Alexander project" involved private investigator Glenn Mulcaire hacking phones.
Mr Coulson, editor between 2003 and 2007, denies conspiracy to hack phones.
Both he and Mr Goodman deny conspiring to commit misconduct in a public office.
Former royal editor Mr Goodman, 56, of Addlestone, Surrey, and private investigator Mulcaire were jailed for phone hacking in January 2007.
Royal phonesMr Goodman has previously told the Old Bailey his former editor agreed to payments in 2005 that led to three phones in the royal household being hacked.
But Mr Goodman had stopped short of saying Mr Coulson knew about phone hacking at that time.
Mr Coulson agreed to extra payments of £500 a week to Mulcaire, who had the codename "Alexander", Mr Goodman had told the jury.
Under cross-examination on Thursday, Mr Goodman was asked: "You have told the court Andy Coulson, as a result of what you told him, knew that the source described as 'Alexander' was in fact Glenn Mulcaire, is that right?"
Mr Goodman answered: "Yes."
Timothy Langdale QC, for Mr Coulson, then asked: "And that what Mr Mulcaire was doing as part of the 'Alexander project' was hacking phones?"
Mr Goodman responded: "Yes."
Mr Langdale went on: "So he knew all about that project... he knew it was Glenn Mulcaire hacking. That's what the 'Alexander project' was?"
To which Mr Goodman said: "Yes."
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