Sarah Ferguson "has nowhere to go or anyone to go with" as her and Prince Andrew's exit from Royal Lodge looms, according to a source.
The pair are set to live apart for the first time since 2008, with Fergie said to be "on the edge" about the future.
The disgraced royals are pursuing two homes on the Windsor estate, with Andrew eyeing up Prince Harry and Meghan's old home, Frogmore Cottage.
Fergie has her sights on Adelaide Cottage, set to be vacated next month by the Prince and Princess of Wales.
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A source close to the duo, who have been divorced since 1996, said the offers that have come to light are "misrepresentative of the truth," insisting that they have "been on the table for months".
They claimed: "It was an option put forward by the 'other side' and at an early stage [in negotiations].
"Whether it is still on the table, I don't know. But the suggestion that they have been demanding a new home each is misrepresentative of the truth.
"No demands have been made. People have been trying to come up with solutions."
Close sources to Sarah Ferguson said she has 'nowhere to go'
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While Buckingham Palace has declined to comment on the claims, insiders suggest they "do not recognise" this upcoming outcome.
King Charles has long wanted his younger brother to leave the Grade II-listed Royal Lodge on the Windsor estate.
Andrew has only paid a "peppercorn" of rent on the property, largely living there rent-free.
The 65-year-old bought a 75-year lease on the property for £1million, forking out a further £7.5million upfront for repairs and refurbishment.
King Charles has long wanted his younger brother to move out of Royal Lodge
| GETTYSurprise has been sparked in royal circles about the pair finally being willing to go their separate ways, pursuing properties just a stone's throw from one another.
Insiders have pointed out that the King has no legal responsibility towards Ms Ferguson, who has effectively been a "lodger" at her former husband's home for nearly two decades.
Others suggested it would be prudent to keep Fergie "in the fold" rather than having her consider another tell-all book.
She has already released a memoir during the year she divorced Andrew and an autobiography in 2011.
The pair will leave Royal Lodge, having lived together since 2008
| GETTYSources close to Fergie explained that she is "completely on the edge" and "absolutely bereft".
Ms Ferguson is believed to be hugely "embarrassed" by the Jeffrey Epstein scandal, following details of a "cringeworthy" email she wrote to the disgraced financier.
GB News has contacted Sarah Ferguson's team about claims she is pursuing Adelaide Cottage.
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