Prince Andrew and his accuser Virginia Giuffre have settled out of court over her civil sex assault claim filed in the US, according to court documents.
The Duke of York has always denied the allegations.
In the documents, the prince has said he “regrets his association” with convicted sex offender Jeffrey Epstein.
The settlement amount will not be disclosed and the prince plans to make a “substantial donation to Ms Giuffre’s charity in support of victims’ rights”.
The documents said the duke “pledges to demonstrate his regret for his association with Epstein by supporting the fight against the evils of sex trafficking, and by supporting its victims”.
The documents said the duke and his accuser “will file a stipulated dismissal upon Ms Giuffre’s receipt of the settlement (the sum of which is not being disclosed).
“Prince Andrew intends to make a substantial donation to Ms Giuffre’s charity in support of victims’ rights.
“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.”
The documents add: “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.
“He pledges to demonstrate his regret for his association with Epstein by supporting the fight against the evils of sex trafficking, and by supporting its victims.”
Sky’s royal correspondent Rhiannon Mills said: “It has to be said, this settlement has come out of the blue.
“In recent weeks and months we have simply seen ongoing brinkmanship between the two sides…
“And certainly in recent weeks it did appear this case was heading to trial and we know the judge had put that potential date in the diary.
“But now a settlement has been reached.”