More Prince Andrew Fallout: Prince Edward and Wife Sophie Said to be 'Unhappy' at Plans for Them to Share Cottage With Disgraced Duke at Christmas

According to insiders, the Edinburghs felt this year's choice of Wood Farm was a "step up" for them but were unhappy at the thought of spending their Christmas "cheek by jowl with the Yorks".

Prince Andrew decided to decline the invitation amidst pressure to stay out of sight due to the controversy surrounding his relationship with a Chinese "spy".

Andrew's choice was made easier after his daughters Beatrice and Eugenie planned to spend Christmas with their in-laws rather than at Sandringham.

Beatrice will now go to Norfolk with husband, Edo Mapelli Mozzi, and their daughter, Sienna.

Due to the unexpected change, the duke will spend the holidays in Windsor with his former wife, Sarah Ferguson, who previously referred to herself as a caregiver for him.

According to a recent ruling, Andrew was "prepared to enter into business activities" with the alleged spy, Chinese businessman Yang Tenbo, also known as Chris Yang, who Britain's High Court said gained an "unusual degree of trust" with the disgraced prince.

The High Court's decision also revealed how British intelligence agencies were worried Yang sought to gain influence over a member of the royal family.

Yang, who has been banned from the UK, has denied he is a spy.

As RadarOnline.com previously reported, the prince's biographer, Andrew Lownie, believes the controversy has the potential to "bring down the royals".

Lownie said: "It's probably the most damaging of Andrew's scandals.

"It's more damaging than (Jeffrey) Epstein. I think the story is going to run right through next year.

"He's always been much more vulnerable to the financial scandals in his life than the sexual ones.

"These stories haven't really been investigated. It's going to have to lead to greater transparency about royal finances.

"This has unlocked a whole series of events that I think are going to be very damaging to the monarchy.

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According to The Sun, insiders had urged Andrew to "uninvite himself" from the royal family's pre-festive lunch, which took place this week.

He was due to attend the lunch at the palace, but a source said: "He is under pressure to step away."