The veteran Australian star launched action in the Federal Court against the Murdoch-owned publication to "redress the slurs, innuendo and hyperbole that they have created around my standing in the entertainment industry and in the greater community".
Geoffrey Rush has filed defamation proceedings against the Daily Telegraph after allegations of inappropriate behaviour were made against him.
The actor said he would be taking legal action against The Daily Telegraph for publishing reports about the claims, which he dubbed "false", "demeaning", and "intolerable".
Rush has consistently denied the Telegraph story and made two statements through his lawyers.
"This has caused irreparable damage to my reputation".
Rush's lawyer Nicholas Pullen has called a press conference for 3pm (AEDT) on Friday at the offices of HWL Ebsworth in Melbourne where he is a partner, stating that Mr Rush will be present.
Pullen said a trial date had yet to be fixed, but that Rush would be making a claim for damages and was keen to have the matter "heard as quickly as possible".
Rush said the allegations were "extremely hurtful" to his wife, son and daughter as well as to many colleagues in the film, television and theatre industry.
Last week, Rush voluntarily stepped down as president of the Australian Academy of Cinema and Television until the matter is resolved. He said he had not been informed of the nature of the complaint by the complainant or the theatre company, either at the time the complaint was made or since.
A company spokesperson said the complainant requested the allegation be dealt with confidentially, and did not want Rush notified or involved in any investigation.
"We will defend our position in court".
Mr Rush is one of Australia's most celebrated actors, having starred in films including Shine, Elizabeth and The King's Speech.