The defence secretary has said any decision over whether Prince Andrew is allowed to represent regiments rests with the palace.
Ben Wallace stressed that the Duke of York was currently acting as a “private citizen” as the palace had already removed his titles.
It comes amid calls for answers over Andrew’s role in public life and how he will fund a financial settlement, after settling the US civil sexual assault case brought by Virginia Giuffre.
The Queen is said to be footing part of the bill for Andrew’s lawsuit which could cost up to £12 million, according to some reports.
However, there is likely to be further questions of the royal family given that they derive part of their wealth from the British public.
Last month Buckingham Palace announced Andrew’s military titles and royal patronages had been returned to the Queen. It meant he lost his military titles including Colonel of the Grenadier Guards - one of the most senior infantry regiments in the British army.
Asked if the Duke of York should be allowed to represent regiments again, Wallace told Sky News: “Well I don’t think he represents any of them at the moment, I think the palace took a decision that those titles were to be removed from him, so I think he is effectively acting now as a private citizen in so far as both addressing the challenges and the allegations.
“There’s been, obviously, a payment and I think that is where he currently remains, that the decision on titles rests obviously with the palace in the future.
“But I think it’s been pretty clear that this settlement is a recognition that he wants to bring this to a close and also recognise as his statement says the suffering and the challenges that the victims have been through as a result of their allegations and their stand against the exploitation by [Jeffrey] Epstein.”
Andrew has also stopped using the style “His Royal Highness” in an official capacity.