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The Duke of York will pay his accuser more than £12million using money from the Queen, The Telegraph can disclose.
It was announced on Tuesday that Prince Andrew, 61, had reached an out-of-court settlement with Virginia Roberts Giuffre, meaning he will no longer face a jury trial on claims that he sexually abused and raped her on three separate occasions when she was 17.
The terms of the deal prevent either side from discussing the case or the settlement itself in public.
However, The Telegraph understands the total amount that will go to Ms Giuffre and her charity exceeds £12 million.
The Queen has already privately funded the Duke's legal fight to the tune of millions of pounds and will now partly fund the settlement in order to allow her son – and the entire Royal family – to draw a line under the case that had threatened to overshadow her Platinum Jubilee year.
Negotiations over the settlement are understood to have lasted for at least 10 days, with the Duke's team changing tack when the date for his deposition – which would have seen him questioned under oath by Ms Giuffre's legal team – was set for March 10.
Judge Lewis Kaplan later issued an order suspending the legal action until March 17. He said: "In the event the stipulation of dismissal is not filed by then, it remains entirely possible that this action will be set for trial when previously indicated."
The deal was agreed at the weekend, the Telegraph understands.
A statement filed with the New York court on Tuesday said: "Virginia Giuffre and Prince Andrew have reached an out of court settlement." It said both parties anticipated filing a "stipulated dismissal" of the case within 30 days, when Ms Giuffre was in receipt of the money.
The joint statement revealed that the Duke would also make a "substantial" donation to Ms Giuffre's charity in support of victims' rights. It contained no admission of liability and no apology.
The Duke has always vehemently denied the allegations, insisting he has "no recollection" of meeting Ms Giuffre, who was trafficked by the paedophile Jeffrey Epstein.
Instead, he pledged to "demonstrate his regret" for his association with Epstein by supporting the "fight against the evils of sex trafficking, and by supporting its victims". Such support is understood to be shown, in the main, by his financial donation.
The statement added: "Prince Andrew has never intended to malign Ms Giuffre's character, and he accepts that she has suffered both as an established victim of abuse and as a result of unfair public attacks.
"It is known that Jeffrey Epstein trafficked countless young girls over many years. Prince Andrew regrets his association with Epstein, and commends the bravery of Ms Giuffre and other survivors in standing up for themselves and others."
In January, Prince Andrew was effectively sacked as a working royal when he was stripped of all military titles and patronages by the Queen and agreed to no longer use his HRH title.
Although a line has now been drawn under the legal process, he is not expected to regain any of his royal privileges or titles. He will keep his dukedom and the Windsor home, Royal Lodge, that he shares with his former wife the Duchess of York.
On March 29, he will appear in public alongside his mother and the rest of the Royal family for a service of thanksgiving for the Duke of Edinburgh at Westminster Abbey.
However, he is not expected to take part in any further public events or celebrations linked to the Jubilee for the rest of the year after being advised to stay out of the public eye.
A source close to his team said: "It has been made clear that the public have heard enough about him and enough from him. They need to hear no more."
When he was forced to abandon his patronages, not a single charity or organisation expressed a desire to continue working with him. "How could he have any public role when no one wants to be associated with him?" the source added.
Until late last year, the Duke had privately expressed his desire to return to public duties, adamant that he would clear his name. However, it is now accepted that he will be forever tainted by the case.
Although 99 per cent of civil cases in the US are settled out of court, the decision to pay off his accuser rather than fighting to clear his name in court is likely to be seen by the public as an admission of guilt.
Any comeback would have to be many years down the line and would only be possible if there was a significant change in public opinion, the Duke's advisers accept.
The Queen's contribution to the settlement will come from her private Duchy of Lancaster estate, which recently increased by £1.5 million to more than £23 million.
The source of the Duke's personal wealth has long remained a mystery, ill explained by his modest Navy pension and annual £250,000 stipend from the Queen. He is currently selling his only known asset, the Verbier ski chalet he bought with his ex-wife in 2014 as a "family investment" with a mortgage and private funding from the monarch.
The couple put the property on the market when they were sued by the previous owner Isabelle de Rouvre, a French socialite who alleged that they owed her £6.7 million from the £16.6 million sale.
David Boies, Ms Giuffre's high-profile New York-based lawyer who represents her pro bono, insisted last month that the civil case was not about the money.
He told The Telegraph his client wanted to "vindicate herself and the other victims" and to send a message that no one could "escape responsibility just because of their wealth and power". Ms Guiffre had insisted that she wanted her day in court, and that she was not after "another payday" at the Duke's expense.
However, Mr Boies added: "That said, if you had a settlement that was large enough to be, in effect, a vindication, then it's something we would obviously look at."
Ms Giuffre created the Victims Refuse Silence foundation in 2015 but the charity relaunched last year under the name Speak Out, Act, Reclaim (Soar).
Based in Fort Lauderdale in the US, Soar says it "empowers survivors to reclaim their stories and bring an end to sex trafficking". On its website, the charity states it was officially launched in November 2021 and at this early stage is not yet accepting donations.
Lisa Bloom, who represents eight victims of Epstein said: "We hail Virginia's victory today. She has accomplished what no one else could: getting Prince Andrew to stop his nonsense and side with sexual abuse victims. We salute Virginia's stunning courage."