His lawyers, who have won a ?185,000 payout from the BBC, warned Sally Bercow, wife of the House of Commons speaker, she was first in the line of a ?very long list? of tweeters in their sights.
They said simply deleting messages which mentioned the peer was not good enough and they were determined to ?end trial by Twitter?.
Users with the most followers were likely to be those targeted first.
Mrs Bercow?s first Twitter response to the warning was *Gulps* but she later tweeted: ?I guess I?d better get some legal advice then. Still maintain was not a libellous tweet ? just foolish.?
Lord McAlpine, a former party treasurer, was linked to abuse after a Newsnight programme on the Welsh children?s home scandal, although he was not explicitly named.
Lord McAlpine, 70, insisted: ?I have been conscious that any settlement will be paid by the licence fee-payers, and have taken that into account in reaching agreement with the BBC.
?We will now be continuing to seek settlements from individuals who have used Twitter to defame me.?
His lawyer, Andrew Reid, urged anyone who posted Lord McAlpine?s name to come forward to settle.
Mr Reid said: ?Very sadly, we are going to take action against a lot of people. We have been watching people who have been taking down what they put on Twitter.?
He claimed a list of tweeters who mentioned his client had been compiled, saying ?we know ? in inverted commas ? who you are?.
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