Prince Andrew was reportedly ordered to step down by Prince Philip following the worsening crisis surrounding his friendship with paedophile Jeffrey Epstein.
The Duke of Edinburgh is said to have told his disgraced son to stop royal duties following the backlash over his connection with the now dead billionaire.
A insider at Sandringham, where the showdown took place, told the Daily Telegraph : "It was a tense meeting and Philip told his son that he had to take his punishment."
They claimed he said it was "for the sake of the monarchy."
A showdown between the two allegedly took place at Sandringham hours before a Panorama interview with Virginia Roberts Guiffre was screened on Monday.
Mrs Guiffre claims she was forced to have sex with the prince three times when she was 17.
In the hour-long documentary, she described feeling "horrified and abused" during the "disgusting" incident.
The humiliated prince was also reportedly read the "riot act" from Prince Charles, who is said to have driven 140 miles to tell him "there was no way back for him".
Andrew, 59, was summoned to the Queen's Sandringham estate in Norfolk to face "strong words" from Prince Charles on Monday.
A source told the newspaper: "It was all very civilised but Charles calmly read him the riot act and told him there was no way back for him in the near future.
"Andrew thought he was being treated harshly as nothing has yet been proved... but he accepted the decision. He really had little choice."
Andrew has denied Mrs Guiffre's claims in several statements from Buckingham Palace and in a disastrous BBC Newsnight interview last month.
Charles was also said to be concerned with the prospect of Andrew going to the US to clear his name, amid fears that such a move could 'remove the mystery' surrounding the Royal family .
Another source said: "The feeling is that with Prince Philip retired at 98 and the Queen now 93, Charles has to take a firm grip on the family and plan for the future."
Mrs Guiffre claims she was trafficked by the paedophile financier Epstein and forced to have sex with Andrew when she was a teenager, which the duke categorically denies.
The Panorama investigation broadcast on BBC One on Monday night disclosed that five women who allege they were victims of paedophile Epstein are calling on Andrew to give a testimony in their civil court case.
They claim the duke saw people being given massages at Epstein's homes.
The Queen's second son, who stepped down just over a week ago, insisted in his disastrous Newsnight interview that he did not witness or suspect any suspicious behaviour during his visits to Epstein's homes in Florida, New York and the Caribbean.
Panorama claimed it had also uncovered an email allegedly sent by Andrew in 2015 to Ghislaine Maxwell, who is accused of procuring girls for Epstein.
She denies the claims and has not been charged with a crime.
In it, the duke is reported to have asked for Ms Maxwell's help in dealing with claims by Ms Guiffre, who was previously known as Virginia Roberts.
It was sent at 5.50am on January 3, 2015 after Mrs Giuffre lodged court papers in the US.
The duke is said to have written: "Let me know when we can talk. Got some specific questions to ask you about Virginia Roberts."
Ms Maxwell replies: "Have some info.
"Call me when you have a moment."
Mrs Guiffre alleged how she was brought to London by Epstein in 2001, introduced to Andrew and taken to Tramp nightclub, and asked by the duke to dance.
She told Panorama reporter Darragh Macintyre: "He is the most hideous dancer I've ever seen in my life.
"It was horrible and this guy was sweating all over me, his sweat was like it was raining basically everywhere, I was just like grossed out from it, but I knew I had to keep him happy because that's what Jeffrey and Ghislaine would have expected from me."
In his recent Newsnight interview, Andrew claimed he had a medical condition in 2001, after suffering an overdose of adrenaline in the Falklands War when he was shot at, which meant he did not sweat.
When they had left the club, Mrs Giuffre said the socialite Ms Maxwell, Epstein's then-girlfriend, gave her instructions.
"In the car Ghislaine tells me that I have to do for Andrew what I do for Jeffrey and that just made me sick," she said.
She said that later that evening she had sex with Andrew upstairs at Ms Maxwell's house in Belgravia.
The duke has denied meeting Ms Giuffre, saying: "I can absolutely categorically tell you it never happened. I have no recollection of ever meeting this lady, none whatsoever."
A Buckingham Palace spokesman said in response to the allegations on Panorama: "It is emphatically denied that The Duke of York had any form of sexual contact or relationship with Virginia Roberts.
"Any claim to the contrary is false and without foundation."
On the duke's association with Epstein, the palace spokesman added: "The Duke of York unequivocally regrets his ill-judged association with Jeffrey Epstein. Epstein's suicide left many unanswered questions, particularly for his victims.
"The Duke deeply sympathises with those affected who want some form of closure. It is his hope that, in time, they will be able to rebuild their lives.
"The Duke is willing to help any appropriate law enforcement agency with their investigations, if required.
"The Duke has already stated that he did not see, witness or suspect any behaviour of the sort that subsequently led to Jeffrey Epstein's arrest and conviction.
"He deplores the exploitation of any human being and would not condone, participate in, or encourage any such behaviour."
During his Newsnight interview, the duke said an alleged encounter with Ms Giuffre in 2001 did not happen as he spent the day with his daughter, Princess Beatrice, taking her to Pizza Express in Woking for a party.
Epstein, 66, killed himself in his New York jail cell in August this year while awaiting trial on child sex trafficking charges, which he had denied.
Ms Giuffre's interview took place before the duke's appearance on Newsnight.
The Duke of York's press office declined to comment on Prince Philips ordering his son to step down.
