Adelaide Cottage is not thought to be a future housing option for Sarah Ferguson, as an insider has denied Prince Andrew and his ex-wife "demanded" separate houses.
Royal representatives are engaged in discussions to secure alternative accommodation for Sarah, according to new claims.
The negotiations form part of broader efforts to resolve Prince Andrew's tenancy at Royal Lodge.
It was previously reported in the Sun that the prince presented "shock demands" to His Majesty, insisting on Adelaide Cottage as a residence for his former spouse, Fergie.
Adelaide Cottage 'not an option for Fergie' as insider denies separate house 'demand'
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However, royal insiders have refuted suggestions that the property, soon to be vacated by Prince William and Princess Kate, features in any official proposals, according to the Telegraph.
Multiple housing solutions have been tabled by the King's representatives during these talks, though Buckingham Palace has declined to address claims regarding specific arrangements for Sarah's future residence.
GB News has contacted Buckingham Palace for an independent comment.
The former Sussex residence at Frogmore Cottage remains under consideration as a potential solution, despite Prince Andrew's previous rejection of the property.
Frogmore Cottage is located on the Windsor Estate | PARoyal officials are understood to have presented various accommodation proposals over the past 12 months as part of ongoing negotiations.
Sources close to the discussions told the publication that suggestions for separate homes emerged from Palace officials rather than being "demanded" by the former royal couple.
Prince Andrew and Sarah currently share the 30-bedroom Windsor property along with two corgis inherited from Queen Elizabeth II.
Whilst multiple options have been discussed, insiders claim that none have been formally accepted or advanced to completion.
Sarah Ferguson divorced Prince Andrew in 1996 | REUTERSThe Palace has nonetheless made clear its desire for Prince Andrew to depart Royal Lodge at the earliest opportunity.
Mounting public scrutiny has intensified following revelations about the prince's false claims regarding his association with convicted sex offender Jeffrey Epstein. The pressure manifested publicly when His Majesty faced heckling about his brother whilst visiting a cathedral earlier today.
Palace officials are pressing for a swift resolution, having formally requested that Prince Andrew leave the Windsor property without delay.
However, the prince maintains strong legal protections through what insiders characterise as an unbreakable tenancy agreement with the Crown Estate.
Sarah Ferguson and Prince Andrew married in 1986 | PAParliamentary oversight may soon add to the pressure, with potential investigations by both the Public Accounts Committee and National Audit Office looming. One insider suggested Andrew's departure from Royal Lodge was now a matter of timing rather than possibility, stating it was "not if, but when".
Both Windsor properties under discussion would require substantial monthly payments, with estimates suggesting £15,000 for Royal Lodge and £6,000 for Adelaide Cottage, raising uncertainty about funding arrangements. The prince previously invested £8million in Royal Lodge renovations, details of which were recently re-examined by the National Audit Office.
Prince Harry and Meghan Markle have remained silent on the possibility of their former residence housing Prince Andrew. The Sussexes spent approximately £2.4million refurbishing Frogmore Cottage in 2019 before relocating to the US, though the property has stood empty since.
Meanwhile, William and Kate are preparing to relocate from Adelaide Cottage to the more spacious Forest Lodge. Prince Andrew has been absent from public view since October 3, having announced his decision to relinquish his title and associated honours whilst maintaining his innocence against all allegations.