Prince Andrew and his ex-wife, Sarah Ferguson, are "set to live apart" as the pair prepare to leave Royal Lodge and pursue separate residences.
The disgraced royal is discussing leaving his Grade II-listed mansion on the Windsor Estate, with it emerging last week that he had effectively not paid rent for 22 years.
The pair have lived together for the past 18 years, despite being divorced since 1996.
Andrew previously turned down the King's offer of Harry and Meghan's old home, Frogmore Cottage, however, his position has changed.
Adelaide Cottage is also available for the pair, which Prince William and Princess Kate are set vacate.
King Charles has reportedly long wanted Andrew and Fergie out of the Lodge, for which they have not paid rent for over two decades.
Neither of the potential properties would need renovations or further protection at the taxpayer's expense, as both are on Windsor Castle's security perimeter.
Discussions are reportedly ongoing regarding how much rent Andrew and Ms Ferguson would be charged.
The pair will live separately for the first time in nearly 20 years
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It is currently unclear what will happen to Royal Lodge upon the pair's exit, but insiders believe new tenants will take over the property to fund much-needed renovations.
Andrew, who records indicate entered into a 75-year lease for the property in 2003, made an initial payment of £1m for the residence.
According to a National Audit Office report, he was additionally obligated to contribute £7.5m towards renovations that were finalised in 2005.
A friend of the former duke said: "[Andrew] is realistic and knows the writing is on the wall and that his time at Royal Lodge is up."
A switch to Frogmore and Adelaide will see the duo part ways, having lived together since 2008.
It emerged last week that Andrew had effectively not paid rent for 22 years
| GETTYThe friend continued: "They have been under immense strain this year and need a break from one another. It's a fresh start for both."
The properties' location, just around the corner from one another, will still allow the pair to see each other regularly.
Although Frogmore would have been too small for them to live together, a source suggested that each house alone is big enough for their daughter and family to come and visit.
Other friends feel that Ms Ferguson deserves a royal occupancy to herself.
Frogmore Cottage (pictured) and Adelaide are available for Andrew and Fergie
| PAHowever, Adelaide would not offer Fergie the significant space she is used to at Royal Lodge.
The Garde II-listed mansion boasts 40 hectares of grounds, enough to fit in 60 football pitches.
Through a gated, manned entrance, the mansion has seven bedrooms, a drawing room, a conservatory, and a nearly 50-foot-long saloon.
Frogmore and Adelaide offer different styles, with the latter being described as a "modest" family home.
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