The former Duke of York is in line to receive a large one-off payment and an annual stipend designed to prevent him overspending in his new life as a commoner, the Guardian understands.

One option for a relocation settlement, as the king strives for a “once and for all” solution to the problem of Andrew Mountbatten Windsor, includes an initial six-figure sum to cover his move from Royal Lodge in Windsor to private accommodation in Sandringham, Norfolk.

This would be followed by an annuity, paid from Charles’s private funds, and thought to be several times Mountbatten Windsor’s £20k-a-year navy pension, sources close to the matter said. Talks on the relocation package are believed to be ongoing.