The Duke of York will not be attending the traditional Royal Family pre-Christmas lunch at Buckingham Palace on Thursday, according to royal sources.
He had already pulled out of attending the Christmas gathering at Sandringham in Norfolk.
It comes after Chinese businessman Yang Tengbo, who had links to the prince, was revealed to have been barred from the UK after concerns about national security risks.
Prince Andrew has said that he had ceased contact with Mr Yang.
Royal sources suggested the prince felt staying away from the lunch at Buckingham Palace was the right thing to do - and that his ex-wife, the Duchess of York, had helped to advise him in that decision.
It is understood the King welcomed the duchess's help in recognising it was not the time or place for them to attend.
It also suggests the duchess remains an important influence on Prince Andrew, who is no longer financially supported by the King.
The prince had previously agreed not to attend the traditional festive royal gathering in Sandringham, which means he will not be in photographs of the Royal Family going to church on Christmas morning.
It followed suggestions he had been advised to keep a low profile during Christmas events, rather than allowing his public attendance to overshadow the occasion.
It now appears he has withdrawn from all of the Royal Family's Christmas celebrations this year, and is expected to spend the festive season with the duchess at their Royal Lodge home in Windsor.
The lunch on Thursday is a private occasion, but it is likely there would have been photographers waiting to get a picture of those attending, and after some uncertainty, it has now emerged Prince Andrew will not be joining the annual event for the extended family.
The prince's latest controversy follows a court hearing in which a Chinese business contact, Yang Tengbo, was alleged to have been cultivating links with senior figures in the UK, in a way that could be used to gain political leverage.
Court papers showed Mr Yang had documents which described Prince Andrew as being in a "desperate situation and will grab on to anything".
Mr Yang has rejected claims he was spying or had done anything unlawful, saying such claims were "entirely untrue". He had sought to challenge the decision to bar him from the UK, but a court had upheld the ban.
Prince Andrew's office had issued a statement saying nothing of a sensitive nature had ever been discussed in his dealings with the Chinese business contact.
But the court case had raised wider political issues about Chinese attempts to gain influence. It had also once more raised questions about the prince's finances, his dealings with international contacts and his judgement.
Prince Andrew is no longer a working royal and Buckingham Palace has not commented.