Britain's Prince Charles named himself as the senior Royal accused of involvement in an allegedly compromising incident witnessed by a servant.
The Prince of Wales talks to his guide during his tour of Oman this morning
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He dismissed the allegation as untrue and insisted the incident did not even take place.
A statement on his behalf from Clarence House said: "In recent days, there have been media reports concerning an allegation that a former Royal Household employee witnessed an incident some years ago involving a senior member of the Royal Family.
"The speculation needs to be brought to an end. The allegation was that the Prince of Wales was involved in the incident. This allegation is untrue.
"The incident which the former employee claims to have witnessed did not take place," the statement said.
"There is a particular sadness about this allegation because it was made by a former Royal Household employee who, unfortunately, has suffered from post-traumatic stress disorder and has previously suffered from alcoholism following active service in the Falklands.
"He has, in the past, made other unrelated allegations, which the police have fully investigated, and found to be unsubstantiated," the statement said.