The woman has not spoken publicly since the Telegraph published the stories, but on Friday the federal court heard News would seek to argue truth in its defence on the basis of her statement.
Rush is suing the Telegraph over a series of articles published in November and December.
In court on Friday Rush’s barrister Sue Chrysanthou said Rush had witnesses who would “directly contradict” the woman’s statement.
On Friday Chrysanthou said Rush intended to run a “substantial malice case” against the Telegraph.