Prince Andrew is said to be plotting a "fightback" into public life and believes this may still be possible, it is claimed.
The Duke's accuser, Virginia Giuffre, dropped a case she had brought against American lawyer Alan Dershowitz last week - in which she said she "may have made a mistake" when she accused him of sexual abuse.
Ms Giuffre sued Mr Dershowitz in 2019, where she alleged that he defamed her when he denied claims that she had been trafficked to the attorney by Jeffrey Epstein between 2000 and 2002.
However, on Tuesday, she agreed to drop the allegations and went on to admit that she “may have made a mistake” when she also accused him of sexual abuse.
Last night a source told Mail Online : "Everything has changed and Andrew is determined to fight."
Meanwhile, reports of those close to him suggest that while the Duke of York is taking his time to grieve the death of his mother, he is, “regaining his strength and ready to fight,” report The Sun.
It is understood that Andrew and Dershowitz are communicating with each other through a third party for this case, as the lawyer has long argued that the royal should have fought the case against Ms Giuffre.
He said: “Andrew should have not settled.
“He should have fought for the truth like me.”
Andrew, 62, paid Ms Giuffre, 39, a reported £12 million to settle a civil case in which she accused him of sexual abuse.
He signed an order which stops him from denying that he had sex with Ms Giuffre when she was 17.
Ms Giuffre also claimed that she was held as a sex slave by Epstein and abused by him, his then-girlfriend Ghislaine Maxwell and by other members of their social circle for a number of years.
News of Andrew's planned battle for return comes after he spent a day shooting with Princess Anne, Prince Edward and other members of the Royal Family on the Windsor estate.
Andrew was spotted looking trim out riding in Windsor, with poppies pinned to his horse’s bridle.
His brother, King Charles III, was also seen on the grounds of Windsor and is thought to have joined his siblings in the afternoon, but did not attend the shoot, according to a Buckingham Palace source.
The Duke appeared relaxed as he enjoyed lunch with Anne, her husband Tim Laurence, and Edward and his wife, the Countess of Wessex.
Sophie Winkleman, wife of Freddie Windsor, was also seen with the Royal party on the Windsor estate.
And just last week, for the first time since the loss of his mother, he even went out for dinner.
Pictures of Andrew out with family have revealed just how far from being out in the cold the Duke is, as it shows that he still has the support of members of his family.
However, he will not be present at the Cenotaph today as he is no longer able to take part in Royal events.
He was also absent from the Festival of Remembrance at the Albert Hall last night, which remembered those who fought in the Falklands conflict in 1982.