Prince Andrew is said to have received an offer to live in the United Arab Emirates, while undergoing "advanced talks" to leave Royal Lodge on the Windsor estate.
The King has reportedly decided "enough is enough" as fresh scandals related to Andrew's friendship with paedophile billionaire Jeffrey Epstein continue to emerge.
It is understood Andrew, 65, and his ex-wife Sarah Ferguson have been offered the use of a luxurious palace in Abu Dhabi by its Sheikh Mohamed bin Zayed Al Nahyan, The Sun reports.
The palace covers 1,500 square metres, with six en suite air-conditioned bedrooms, an indoor gym and swimming pool, and is situated next to a picturesque waterway, within a secure diplomatic area.
The sheikh is believed to have offered the palace for free as a gesture of gratitude for Andrew’s “kindness” to UAE royals when he was an international business envoy.
A source said: "Abu Dhabi’s royal family have made it clear to Andrew that the palace is his if he wants it. It gives him an option should his position in the UK become untenable.
"He has come under enormous pressure following recent developments and the King and Prince William are nearing the point where they’ve had enough.
"Andrew would be afforded every luxury if he makes the move to the UAE but the climate will take him — and Fergie — some time to get used to. Temperatures often top 50C in the summer, meaning he would have to spend much of his time with air conditioning indoors."
If Andrew and Sarah accept the offer, they would join another disgraced royal in exile, Spain's former King Juan Carlos, 87.
The former king abdicated in 2014 after a string of sex scandals as well as an investigation into a €6.7 billion Saudi business deal, and is now based in the Arab nation.
Kemi Badenoch has declined to endorse Robert Jenrick’s call for Prince Andrew to leave Royal Lodge, telling the PA news agency: “I’m the Leader of the Opposition, he’s not the Leader of the Opposition.”
Asked whether she agreed with the shadow justice secretary that Andrew should not be allowed to live in the property, she said: “I don’t comment on royal matters.”
Asked whether Mr Jenrick was out of step with the Tory Party line, she said: “I don’t comment on royal matters. I’m the Leader of the Opposition, he’s not the Leader of the Opposition.”
The Commons spending watchdog will look into the lease arrangements for Prince Andrew’s Windsor mansion.
Andrew lives in Royal Lodge on a peppercorn rent.
Sir Geoffrey Clifton-Brown, chairman of the Public Accounts Committee, said he will be seeking answers from the Crown Estate and the Treasury.
“The Public Accounts Committee which I chair will be writing in the coming days to the Crown Estate Commissioners and HM Treasury, seeking further information on the lease arrangements for Royal Lodge,” he said.
“In the correspondence, our cross-party committee will be raising a number of questions with the Crown Estate and HM Treasury.
“This forms part of our long-standing remit, on behalf of Parliament and the British public, to examine the economy, efficiency and effectiveness of public spending, and ensure the taxpayer is receiving best value for money.
“Our committee has a further opportunity in 2026 to consider the annual report and accounts for the Crown Estate, and will make a decision on whether to undertake any work on this in the normal way.
“We will review the response we receive to our forthcoming correspondence and will consider at that time whether to seek further information.”