Prince Andrew brought a masseuse into a Buckingham Palace bedroom to give him a massage, naked under a towel, The Sun has revealed.
The masseuse, now 55-year, was Monique Giannelloni. It is alleged she was introduced to the Duke by Jeffrey Epstein's socialite ex-girlfriend Ghislaine Maxwell.
She says she was "very nervous" as she entered the palace and claims she saw a photo of the Duke's ex-wife Sarah Ferguson and two daughters Beatrice and Eugenie in the bedroom.
She says a woman who was Assistant Private Secretary to the Duke, Charlotte Manley, then handed her a cheque for £75 (about $NZ150).
Giannelloni, who previously belonged to the British Register of Complementary Practitioners, said it was concerning how easy it had been to get into the palace for the appointment, reports The Sun.
She also said she recognised the background in the notorious 2001 photo of Andrew with Virginia Giuffre as the upstairs landing at Ghislaine Maxwell's London home.
In his BBC interview, the Duke claimed he had never been upstairs in Maxwell's home.
But Giannelloni said she was certain since she'd been booked to go to Maxwell's house at 11pm that night. She claimed she couldn't make that appointment and gave Maxwell a 10.30am one for the following day.
She said Epstein was present at another appointment within the next few days.
"There was an animated discussion going on between the two that lasted most of the time. They were talking about purchasing an island.
"They were mentioning millions of pounds and speaking very pretentiously and I thought, 'Who are these people?'"
Giannelloni said Maxwell then asked her to give out massages at a yacht party she was hosting.
"She told me that I would have to keep private what happened on the yacht. I assumed she meant 'anything goes'."
She declined the offer, describing her impression of Maxwell as "distasteful and pretentious" and Epstein as "creepy, seedy and very pretentious".
Maxwell's whereabouts are currently unknown, but the 57-year-old has denied she was involved with Epstein's crimes.
Prince Andrew has denied accusations from Virginia Giuffre that he had sex with her when she was just 17 years old.
He was forced to step down from royal duties after his Newsnight interview revealed his sympathy for Epstein.