Prince Andrew and Sarah Ferguson have agreed to leave Royal Lodge but are demanding two properties in return, according to reports.
The disgraced royal, 65, will voluntarily leave the 30-room country amid the continued outcry over his “peppercorn rent”, royal sources have said.
It comes after the pair, who divorced in 1996, agreed to relinquish their titles over their past relationship with the late convicted pedophile Jeffrey Epstein.
But Andrew wants to live in Frogmore Cottage in exchange for his departure from the Grade II-listed mansion, for which he has a private tenancy with the Crown Estate, it is claimed.
The Duke and Duchess of Sussex's old residence in Home Park sits just three miles away from Windsor Great Park.
Meanwhile, Andrew’s ex-wife Fergie, 66, has allegedly set her sights on nearby Adelaide Cottage, the current home of the Prince and Princess of Wales.
William and Kate, both 43, are set to move with their children George, 12, Charlotte, 9, and Louis, 6, to Forest Lodge next month.
A friend of the former Duke and Duchess of York told The Sun newspaper: “No one is really sure how it’s going to go down at the Palace yet.
“He (Andrew) is realistic and knows the writing is on the wall and that his time at Royal Lodge is up.”
The source added: “It’s incredible that they (Andrew and Sarah) are willing to go their own separate ways.
“But it indicates that they have been under immense strain this year and need a break from one another. It’s a fresh start for both.”
The friend argues that Frogmore Cottage — which boasts five bedrooms, two orangeries and a yoga studio — is “too small” for the duo.
They also stated that the two cottages are a just stone’s throw away from each other, which gives them a “space” for their daughters Eugenie, 37, and Beatrice, 35, to visit.
It is understood that Andrew was first offered Frogmore Cottage two years ago when Harry, 41, and Meghan, 44, were evicted following their move to the United States.
In 2003, Andrew took on the lease for Royal Lodge from the Queen Mother and spent £7.5million on renovations, although indignation has mounted in recent weeks over his minimal rental payments.
