Royal sources have told the BBC that the Duke of York will not be joining the Royal Family for Christmas at Sandringham.
She added that it was hoped that Prince Andrew would “respectfully withdraw” from family events this year to avoid any distractions.
He is expected to be at home in Windsor on Christmas Day instead.
This comes after a High Court ruling linking an alleged Chinese spy to the prince.
Yang Tengbo, also known as Chris Yang, was previously known only as H6 due to an anonymity order to protect his identity.
But a judge ruled on Monday that the Chinese businessman could be named.
Mr Yang, who was identified as “unusually trusting” with Prince Andrew. Court decisionsaid it was “completely false” that he was a spy.
He added that he had “done nothing wrong or illegal”.
Mr Yang was invited to the prince’s birthday party in 2020 and told he could act on the prince’s behalf when dealing with potential investors in China.
He was also quoted in a letter from an adviser to Prince Andrew as saying: “Under your guidance, we have found a way to keep relevant people in and out of the House of Windsor unnoticed.”
Last week, Britain’s semi-secret National Security Court upheld a 2023 ban on Mr Yang’s entry into the country.
Mr Yang went to the Special Immigration Appeals Commission (SIAC) to appeal the decision.
But he decided the ban should remain in place because of suspicions that he was involved in an “arrest of elites” operation – a tactic by the Chinese state to increase its influence in the West.
Prince Andrew previously said in a statement that he had “cut off all contact” with the Chinese businessman, that all meetings had taken place “through official channels” and that “nothing of a sensitive nature was ever discussed”.