Prince Charles has revealed that the allegations about a senior member of the royal family seen in a compromising position with a member of the Buckingham Palace staff referred to him.

But the heir to the British throne dismissed the allegation as untrue.

Prince Charles in India

A statement issued on his behalf says, "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.

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 newspaper group that sought to publish this allegation knew this and has described the former employee as 'hardly a reliable witness'.

This was why the newspaper concerned agreed to the injunction on Saturday afternoon."

[Following a court case, The Guardian newspaper had said it would not repeat allegations the male servant had made.]

The Prince of Wales has always tried to avoid becoming involved in disputes with the media, which he appreciates fulfils an important role."

Charles private secretary Sir Michael Peat said Charles's sons William and Harry had been kept informed about the situation. "The sons are very supportive of their father," he added.

"Anyone who is a prominent public figure, like the Prince of Wales, is subject to a fairly steady stream of outlandish allegations. Generally, they are dismissed out of hand. I hope this will be treated on its merits and dismissed out of hand. It's totally untrue. Even allegations which are untrue can cause great distress," he said.