King Charles has reportedly told his brother Andrew Mountbatten-Windsor that private funding he receives from the monarch must not be used to pay for his legal action against UK police.
The former Duke of York has launched a judicial review against Thames Valley Police over his arrest in connection to the Epstein files earlier this year.
According to The Telegraph, a Buckingham Palace source said the King had no involvement in the legal action and it had been "made clear" to Mountbatten-Windsor that his private allowance from the monarch should not be used to fund it.
Mountbatten-Windsor received an annual six-figure allowance from the King through his private funds, which included money towards his private security.
The legal action against Thames Valley Police could reportedly cost hundreds of thousands of pounds. Buckingham Palace had previously made it clear that taxpayers would not cover Mountbatten-Windsor's legal cost.
The former prince, who was stripped of his royal titles last year, was arrested at Marsh Farm in Norfolk on his 66th birthday in February on suspicion of misconduct in public office.
UK police searched Marsh Farm and his former home, Royal Lodge in Windsor, as part of the investigation.
Correspondence contained in the Epstein files suggested Mountbatten-Windsor may have passed on confidential information to Jeffery Epstein during his time as a UK trade envoy.
He was questioned for almost 12 hours before being released under investigation and had since repeatedly denied any wrongdoing.
Mountbatten-Windsor had reportedly launched legal action over the circumstances of his February arrest, with the claim concerning the actions of officers when executing the search warrant.
Thames Valley Police had applied to restrict access to documents relating to the legal challenge, with a High Court hearing on the application expected to take place later this week.
Following his brother's arrest, King Charles said the "law must take its course" and expressed his "deepest concern".
"What now follows is the full, fair and proper process by which this issue is investigated in the appropriate manner and by the appropriate authorities," the monarch said in a statement at the time.
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