Prince Andrew says he "ceased all contact" with a businessman accused of being a Chinese spy after concerns were raised by the government.
In a statement from his office, the Duke of York said he had cut ties following "advice" from officials but insisted the pair had never discussed anything of a "sensitive nature".
It marks the first public comment from the 64-year-old royal since it emerged on Thursday that his alleged "close confidant" – who has not been named – had been barred from entering the UK over national security risks.
The statement said: "The Duke of York followed advice from HMG and ceased all contact with the individual after concerns were raised.
"The duke met the individual through official channels, with nothing of a sensitive nature ever discussed. He is unable to comment further on matters relating to national security."
Known as H6, the man was invited to the royal's birthday party in 2020, and was told by Andrew's aide Dominic Hampshire that he could act on the duke's behalf when dealing with potential investors in China, a specialist tribunal heard in July this year.
H6 was first excluded from entering the country in 2023 over national security fears by Suella Braverman, who was then home secretary.
Close confidant 'covert and deceptive'
In July that year, the Home Office said H6 was considered to have engaged in "covert and deceptive activity" on behalf of the Chinese Communist Party.
H6 argued it was unlawful and made an appeal to the Special Immigration Appeals Commission (SIAC). The Chinese embassy in the UK also denied the allegations.
Judges upheld the ban on H6 entering the country on Thursday, arguing the Duke of York could have been made "vulnerable" by his influence.
Read more from Sky News:
UK economy in shock decline
Woman arrested after Buckingham Palace party
Arrests after fairground ride crash
Prince Andrew in 'desperate situation'
Along with their decision, SIAC revealed a letter from Mr Hampshire to H6 in which he stated: "Outside of his [Andrew's] closest internal confidants, you sit at the very top of a tree that many, many people would like to be on."
SIAC also referred to a 2021 document recovered from H6's device which said the prince "is in a desperate situation and will grab onto anything".
Andrew was a roving UK trade ambassador from 2001-2011.
He was forced to step aside from public duties in 2019 over his friendship with American financier and convicted paedophile Jeffrey Epstein who took his own life in prison.
Andrew has always denied any accusations of wrongdoing. In 2022, the Royal Family removed his military links and royal patronages.
Responding to the ban, a spokesperson for the UK's Chinese embassy said some in the UK are "so keen" on making up "all kinds of spy stories against China".
"Their purpose is to smear China and sabotage normal people-to-people exchanges between China and the UK. We strongly condemn this."
(c) Sky News 2024: Prince Andrew issues statement over suspected Chinese spy barred from entering UK