Prince Andrew's legal team are in crisis talks after his lawyers failed to persuade a US judge to dismiss Virginia Giuffre's lawsuit accusing him of sexual assault.
The Duke of York has three options before the next stage of the case in which he is accused of sexually abusing Ms Giuffre on three occasions when she was a teenager. Andrew strenuously denies the claims.
The campaigner, 38, claims she was introduced to the royal by billionaire Jeffrey Epstein and Ghislaine Maxwell, who was convicted of sex offences in December.
A US judge ruled on Wednesday that the case against Prince Andrew could proceed despite his attempts to have the civil case thrown out before trial.
Facing a potentially damaging and costly court trial, the Queen's second son must decide whether to fight the case, settle, or become a debt fugitive.
The Duke was pictured leaving his home in the vehicle
If Prince Andrew wishes to settle, he must first ensure he has the finances to do so on top of his spiralling legal bills.
The Mirror revealed the Queen "would not assist" in any further financial settlement to Ms Giuffre over the sex allegations.
A source said he is meeting all the costs himself and if there was the potential to settle, "it is in no doubt that the Queen would not assist him in doing so."
The Duke, who lives at the Queen's Royal Lodge in Berkshire, is currently in the process of selling his £17 million Swiss chalet.
Prince Andrew pictured with his arm around 17-year-old Virginia Roberts
It is thought he has so far spent more than $2.7 million on lawyers, according to a recent report by the Sunday Times.
Meanwhile Prince William and Prince Charles are "absolutely furious" and want Prince Andrew to "sort out his own mess", a Palace source said.
Fighting the case would see Prince Andrew give evidence and be publicly quizzed on Ms Giuffre's claims.
The first stage of court proceedings would be a deposition where the Duke would be interviewed under oath about his sex life among other elements of the case.
Virginia Giuffre breaks down in tears during an interview
Witnesses will also give their testimony at this stage which aims to gather information relevant to the case.
If Prince Andrew goes through with the case and loses, he could still face enormous costs.
His accuser could be awarded damages which legal experts predict could be as much as £3million.
A third option is technically available to Prince Andrew where he would stop taking any more calls from Judge Lewis Kaplan or his representatives.
Judge Lewis Kaplan is overseeing the Prince Andrew sex abuse case
Richard Baker / University of Rochester)
Ghislaine Maxwell with Jeffrey Epstein
Prince Andrew's team has not yet spoken about this option which would essentially make him a debt fugitive.
This option would see the Duke stop cooperating and refuse to participate any further in the case which would lead to a default judgement against him.
These US civil judgements are considered difficult to collect from non-residents with no assets in the country.
Regular citizens cannot be extradited for failure to pay a default judgement in any case and the prince's diplomatic position has the potential to make the process even more difficult.
Andrew has denied all accusations made by Ms Giuffre, including that he had sex with her when she was 17 at Maxwell's London home and at two other Epstein properties in 2001.
He has not been charged with any criminal wrongdoing.