Princess Beatrice and Princess Eugenie likely discussed the 'best solution' for Prince Andrew

This comes after he confirmed he had "ceased all contact" with a businessman who is accused of being a Chinese spy.

According to a statement from the royal’s office, he cut contact as soon as concerns were raised by the Government.

It added that Prince Andrew met the individual through "official channels” and “nothing of a sensitive nature ever discussed”.

Meanwhile, the Chinese businessman has denied being a spy and said he’d “done nothing wrong or unlawful”.

Royal commentator Jennie Bond explained how the recent scandal is “another embarrassing row” involving the royal and that King Charles would have “hated” to uninvite him from the Sandringham gathering.

She said: “Andrew would have had to be living on another planet to be unaware of the furore surrounding his association with an alleged spy.

"Just as the year is set to end on a high for the Royal Family - with the King and Princess of Wales greeting the crowds on Christmas Day - along comes another embarrassing row involving the Duke of York.

“The King is a kind soul and Andrew is his brother: he would have hated to be put in the position of having to un-invite him or ban him from what promises to be a big family get-together.

"It seems quite likely that Andrew sat down with Fergie, and possibly his daughters, to discuss the best solution.

"Thankfully, wise heads have prevailed and he obviously realised that his presence at Sandringham would be an embarrassing distraction on a day which - this year of all years - should be all about the King and Catherine.”

Bond added that she believed the Duke of York would be “extremely upset” by the situation, though explained how his family, including ex-wife Sarah Ferguson and daughters Princesses Beatrice and Eugenie, would be “rallying” around him.

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She continued to tell OK!: “I think he will be extremely upset by it all. By all accounts, he is living a fairly isolated life after his fall from grace.

"To be treated as a pariah by your own family at Christmas is tough…however much you might deserve it.

"This probably feels like another kick when you are already down. I think his ex-wife and his daughters will rally around to try to cheer him up.

“And, whilst his siblings might feel exasperated, they are not heartless and will probably have a chat with him on Christmas Day.”