King Charles is set to provide Andrew Mountbatten Windsor with a substantial financial package to facilitate his departure from Royal Lodge, according to sources familiar with the negotiations.

The arrangement reportedly comprises an initial payment in the six-figure range to fund his relocation to private premises in Sandringham, Norfolk.

Beyond this lump sum, the former duke would receive yearly payments from the monarch’s personal wealth, expected to significantly exceed his naval pension of £20,000 annually.

Insiders suggest these payments aim to establish a permanent resolution to Andrew’s circumstances whilst ensuring he avoids “overspending”, according to the Guardian.

King Charles set to hand Andrew ‘six-figure payout’ to curb his ‘overspending’

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Negotiations regarding the financial terms continue as the Palace seeks what one source described as a “once and for all” settlement to address his situation.

The monarch initiated formal proceedings to revoke Andrew’s princely status and HRH designation, with the Palace confirming he had been removed from the peerage register within hours of the announcement.

The Palace expressed solidarity with abuse survivors, stating: “Their majesties wish to make clear that their thoughts and utmost sympathies have been, and will remain with, the victims and survivors of any and all forms of abuse.”

Discussions about vacating Royal Lodge intensified, with formal notice served to relinquish the property lease.

Andrew Mountbatten Windsor paid “peppercorn” payments on Royal Lodge after moving in | GETTY

Cabinet officials collaborated with royal advisers to devise a constitutional approach that would bypass parliamentary procedures, drawing on expert legal counsel.

The administration has endorsed the monarch’s authority to act independently in this matter.

Sir Chris Bryant, the trade minister, suggested Andrew should cooperate with any American inquiries, telling BBC Breakfast that any “decently minded person” would respond to requests from US Senate committees investigating Epstein-related matters.

Metropolitan Police are evaluating whether fresh criminal proceedings are warranted, with two separate inquiries underway.

Sarah Ferguson and Andrew divorced in 1996 but continued to live at Royal Lodge

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One examines whether Virginia Giuffre’s posthumous memoir warrants a full investigation, whilst another concerns allegations that Andrew attempted to use protection officers to investigate Giuffre.

The Prince and Princess of Wales’s relocation to Forest Lodge, under two miles from Royal Lodge, heightened concerns about residing near Andrew when William assumes the throne.

Andrew will remain at Royal Lodge through the festive period, avoiding the traditional royal Christmas gathering at Sandringham.

His departure is anticipated in the new year, despite holding what was described as a “cast-iron” lease with over five decades remaining.

Andrew Mountbatten Windsor will move out of Royal Lodge after residing there for more than 20 years | PAThe process of relinquishing his tenancy follows extended discussions with royal representatives.

Official documentation, including a royal warrant and letters patent formalising the removal of his princely status, will be completed within days.

His daughters, Princesses Eugenie and Beatrice, will maintain their titles under the 1917 letters patent governing children of the sovereign’s sons. Sarah Ferguson will make independent living arrangements.

Despite losing his titles, Andrew retains eighth position in the succession line and technically remains an inactive counsellor of state, changes to which would require legislation.