King Charles did not contribute to the £12 million payout made by Andrew Mountbatten-Windsor to settle a case brought against him by one of Jeffrey Epstein's victims, a source close to him has said.

The palace moved to distance King Charles from the payout, and denied reports he contributed £1.5 million of the total payout to the late Virginia Giuffre, who accused the former duke of having sex with her, aged 17, after she was trafficked to London by Epstein.

Andrew has denied wrongdoing and all allegations made against him. He paid an undisclosed sum, understood to be $15 million (then worth around £12 million), to settle a civil sexual assault lawsuit in 2022.

According to The Sun around £7 million came from the late Queen as a "loan", with a further £3 million from the estate of his father Prince Philip.

Around £1.5million was reportedly contributed by other members of the Firm.

The Times reports that private funds from the royal family were paid to help Andrew with the payout because they believed he was innocent of all the accusations.

He would also have had to find a substantial sum on top of the settlement to cover his legal bills.

A source told The Sun: "As far as anyone knows he still has not repaid a single penny of the millions he borrowed. The money from the royal family bought her silence but denied Virginia her day in court and the chance to openly challenge his account of what happened."

Meeanwhile, Thames Valley police are assessing allegations that while a trade envoy Andrew leaked confidential information about his work to Epstein.

The force is also examining claims that a second woman was sent to the UK in 2010 by Epstein for a sexual encounter with Andrew at Royal Lodge.

Police are expected to decide within weeks whether Andrew is placed under full investigation or there is no further action.

Buckingham Palace has said it will support any police inquiry.

Andrew has previously denied any wrongdoing in his association with Epstein, including that he misused his post as trade envoy.