LOS ANGELES, March 7 (Xinhua) -- A federal judge based in Los Angeles Thursday dismissed adult-film actress Stormy Daniels' lawsuit against U.S. President Donald Trump over a hush-money settlement, which was alleged by Daniels to cover her affair with Trump in 2016.

In a 14 pages order, Central District of California Judge S. James Otero ruled that the suit was irrelevant after Trump and his former lawyer Michael Cohen agreed to rescind a non-disparagement agreement that Daniels signed in exchange for a 130,000 U.S. dollars payment.

"The Court GRANTS Defendants' Motions and holds that it lacks subject matter jurisdiction over the only remaining cause of action in Plaintiff's First Amended Complaint, the cause of action for declaratory relief," wrote Otero, adding: "The Court therefore REMANDS this case to Los Angeles Superior Court."

The move back to state court essentially kills the high-profile case.

Daniels, whose real name is Stephanie Clifford, filed the suit last March, seeking to have the settlement declared illegal so that she could speak up about that affair without fear of financial penalties.

Trump has denied any affair with Daniels and repeatedly said he was not involved in the payment, even though Cohen said he arranged the payment to silence Daniels to help Trump win the presidency in 2016.

That hush money payment is one of the reasons Cohen was sentenced last year to three years in jail for bank fraud and campaign finance violations.

Cohen, the president's once long-time lawyer, on Thursday also sued the Trump Organization after being denied 1.9 million U.S. dollars in fees once he started cooperating with prosecutors probing the president's shadowy business and political dealings.

Both sides of the legal battle claimed victory after Thursday's sentence.

"The U.S. District Court confirmed today that the claim against the president has no basis in law," said Trump's lawyer Charles Harder in a statement provided to the U.S. leading internet entertainment media Deadline.

"Combined with the attorneys' fees and sanctions award in the president's favor totaling 293,000 U.S. dollars, the president has achieved total victory," the statement read.

However, Michael Avenatti, an attorney represented Daniels, declared Thursday that Daniels was the real winner.

"Yet again, lots of misreporting going on. Be clear: The Court specifically found that Stormy received everything she asked for in the lawsuit -- she won. How people can claim this is a "loss" after we forced Trump and Cohen to cave and Cohen has been convicted, etc. is a mystery," Avenatti tweeted.