Prince Andrew is understood to be resisting pressure from the Royal Family to be exiled from Windsor as he wishes to stay close to his daughters, Beatrice and Eugenie.
The disgraced royal is facing intensified efforts from the Palace to compel him to voluntarily vacate his home at Royal Lodge.
Last week, Andrew surrendered the use of his titles, including the Duke of York, amid persistent public scrutiny relating to his relationship to Jeffrey Epstein and links to China.
Following the move, he is now understood to be in advanced talks with King Charles to downsize from the 30-room Royal Lodge, where he has lived effectively rent free since 2003.
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In negotiations, various alternative residences have been suggested for Andrew with the most likely candidates being one of King’s privately-owned properties.
Among these, the estates of Sandringham in Norfolk or Balmoral in Aberdeenshire are considered the frontrunners, where Andrew could live in one of the many self-contained homes on the grounds.
Being private homes of the monarch, such an arrangement would allow him to live rent-free without further cost to the taxpayer.
However, Prince Andrew is understood to be against these solutions as they would put distance between him and his daughters.
Prince Andrew is understood to be refusing attempts to banish him from Windsor
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The disgraced royal is believed to desire to remain in Windsor or London, where he can be close to Beatrice and Eugenie and their young families, per The Telegraph.
Beatrice, 37, currently lives in St James’s Palace with her husband Edoardo Mapelli Mozzi and their two daughters, Sienna and Athena.
Eugenie, 35, lives in Ivy Cottage at Kensington Palace alongside husband Jack Brooksbank and their two sons, August and Ernest.
Regarding their own accommodations, the two sisters are understood to have received assurances from the Palace during negotiations with their father.
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Andrew is said to want to remain in Windsor to stay close to his duaghters, Princess Beatrice and Princess Eugenie
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The pair are understood to have been informed that their tenancy in the properties will not be affected by any decision made regarding Andrew’s future at Royal Lodge.
It follows the announcement from Buckingham Palace, after Andrew’s decision to relinquish the use of his titles, that Beatrice and Eugenie would remain princesses as they remained the granddaughters of the late Queen Elizabeth II.
On Friday, it emerged Prince Andrew and King Charles were locked in negotiations over his future at the Grade-II listed palatial residence.
Although the royal had initially resisted, pointing to five decades remaining on his prepaid tenancy, palace insiders now feel there is increasing acceptance that relocation is unavoidable.
The disgraced royal is currently in talks with King Charles over him vacating Royal Lodge
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Andrew's "cast iron" lease presents legal obstacles to eviction, prompting Buckingham Palace to pursue voluntary surrender instead.
Since moving into Royal Lodge in 2003, he has been paying merely a symbolic annual fee for his 30-room Windsor residence for more than two decades.
The lease arrangement specifies payment of "one peppercorn" yearly, "if demanded", which is how Andrew has managed to retain the substantial property.
Records indicate that the prince entered into a 75-year lease for the property in 2003, making an initial payment of £1m and an additional £7.5m contribution onwards renovations that were finalised in 2005.
The lease documentation reveals that, should the prince surrender the property, the Crown Estate would owe him approximately £558,000.
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