Virgina Giuffre, a victim of Jeffrey Epstein, has sued the Queen's third child in New York.
This week, Andrew's longtime acquaintance Ghislaine Maxwell was found guilty of five counts of sex trafficking, one of which implicated Ms Giuffre.
The jury's decision has re-emphasised Prince Andrew's denials of all charges.
A US judge has refused his legal team's request to halt the case over Ms Giuffre's whereabouts, indicating it may go to trial.
Royal insiders tell The Sunday Times that if Andrew is forced to pay damages to his accuser, he may lose his Duke of York title.
‘If he loses, what do you do with him?' remarked an insider. You can't make him quit like a normal person, but you may ask him to abdicate.'
The Queen would be reluctant to remove the title because her father had it, but the insider claimed he had ‘disgraced' it.
Army officials informed the Daily Mirror that if Andrew loses the appeal, he will be forced to retire from ceremonial military responsibilities.
‘If the lawsuit succeeds, he must go,' claimed one ‘former defence chief.'
‘Even if Andrew is absolutely clear of any wrongdoing, he is already poisonous,' claimed another source. It is believed he will quit.'
Between 1994 and 2004, Maxwell, 60, was convicted in the US of luring vulnerable teenagers to Epstein's residences for him to sexually abuse.
The prosecution called her ‘dangerous' and she faced life in prison.
Andrew stayed at Maxwell and Epstein's homes and invited them to stay on royal land for several years.
His lawyers claim the case should be dismissed since she is truly Australian, not American.
According to Judge Lewis Kaplan, Ms Giuffre's legal team has already received "at least one extensive request for papers relevant to her domicile, with responses due by January 14".
According to Ms Giuffre's team, Andrew's lawyers' request was “a clear attempt to prolong discovery into his own records and testimony,” the judge ruled.