Prince Andrew has reportedly forgiven his former wife Sarah Ferguson, the Duchess of York, after revelations she allegedly agreed to sell an undercover journalist, posing as a businessman, access to the royal family.

Ferguson, who co-habits with Andrew in his Windsor home, is said to have offered to move out of the property but his reaction was; (said in a very posh accent of course),"Don’t be silly, you can stay as long as you like."

Today, The Mirror quotes a family friend as saying: "He’s a very caring person. He thinks she was set up. Andrew told her to calm down and get a grip. He told her she had been set up and although she had clearly made a massive mistake, he wasn’t going to kick her out on to the streets. He knows she can’t afford anywhere, that’s why he let her stay at Royal Lodge in the first place

The duchess, who is said to be facing financial difficulty, is reputedly a “quivering wreck”.

Commenting on their relationship after divorcing in 1996, the friend had the following to say on their unusual situation: "The fact is that when say they are the world’s happiest divorced couple, they really mean it. Sometimes you cannot understand why they split up in the first place. They will always be best friends and although the set-up seems weird to many people, it works for them."

- Alicia Coyle