Bauer Media did not challenge the jury's defamation finding in its appeal and sought only for the damages to be reduced.
Rebel Wilson was awarded the damages and compensation in the Victorian Supreme Court, with Justice John Dixon arguing the amount was required to "vindicate" Wilson after her reputation as an "actress of integrity was wrongly damaged".
Actress Rebel Wilson's record defamation payout from magazine publisher Bauer Media has been slashed from $4.5 million to just $600,000 by Victoria's Court of Appeal.
The trial verdict found that Wilson, best known for her roles in the "Pitch Perfect" movies and "Bridesmaids", should be compensated for the film roles she testified that she lost following the article's publication, including "Trolls" and "Kung Fu Panda 3".
"I'm away on location in Europe filming right now", she tweeted on Wednesday night.
The actress she won her defamation case against Bauer Media in September past year. Bauer Media immediately said it would appeal the record-breaking payment.
"There was no basis in the evidence for making any award of damages for economic loss". "While this case was never about the money for me, I do hope to receive as much as possible to give away to charities and to support the Australian film industry".
Speaking on behalf of Bauer Media, General Counsel, Adrian Goss, said in a statement: "It was important for us to revisit the award of damages".
A summary of the Court of Appeal's judgement said: "For a considerable number of reasons, the critical inferences drawn by the judge could not be upheld".
Wilson is now in Europe in pre-production on Taika Waititi's war-drama Jojo Rabbit but she tweeted that the case was "never about the money" and that proceeds would be going to charity.
Wilson's legal representatives were not immediately available for comment.