Fergie, 63, is understood to have been invited to join the royals for the festive period at Sandringham and could even make a public appearance with her disgraced ex-husband during the traditional Christmas morning walk to St Mary Magdalene Church.
The Royals previously banned Fergie from attending Christmas with the family following the couple’s split in 1992.
Prince Andrew and Sarah Ferguson pictured with Eugenie and Beatrice at the Windsor Horse Show
Prince Andrew and Fergie pictured with their two daughters, princesses Beatrice and Eugenie
Prince Andrew pictured driving through the grounds of Windsor Castle on Monday
Prince Andrew and Sarah Ferguson pictured on their wedding day at Westminster Abbey in 1986
Andrew, Fergie and their children, Princesses Beatrice and Eugenie at the wedding of Rupert Maitland Titterton and Sarah Mason in 1995
The duke has been stripped of his royal duties in the wake of the Jeffrey Epstein and Ghislaine Maxwell sex trafficking scandal
Pictured: Andrew, Sarah Ferguson and their children Princesses Beatrice and Eugenie in 1997
But Wood Farm is reportedly being prepared to host Andrew, Fergie and their daughters Beatrice and Eugenie.
A Sandringham source told The Sun: ‘Andrew is banned from public life but you can’t ban him from family Christmas. Staff at Sandringham have been tasked with getting Wood Farm ready for the whole York family.
‘When she split with Andrew, Sarah was never allowed at the family Christmas Eve and Christmas Day while Philip and the Queen were alive.
‘For 30 years she used to have Christmas dinner on her own. But things are being done differently now.’
If Fergie chooses to accept the invitation, she will join the royals in swapping gifts at Sandringham’s White Room.
This will be followed by a sit-down evening meal in black tie.
It comes after Andrew was spotted in his Range Rover at Windsor on Monday as he was branded an ‘over-inflated egotist’ by a former head of royal protection for demanding to keep his armed police guards.
The Duke of York, 62, looked stressed as he drove his green 4×4 around the Berkshire town, where he still lives with his ex-wife Fergie, amid claims he was left fuming after being informed by government ministers that his £3million-a-year armed police guards were to be axed from December in the wake of the Jeffrey Epstein scandal.
As a working royal the King’s brother had previously been entitled to a taxpayer-funded security detail made up of armed police officers who accompanied him on all visits outside of Windsor, where he resides in the Royal Lodge.
Wood Farm is reportedly being prepared to host Andrew, Fergie and their daughters
The Duke was reeling from the backlash from his ‘car crash’ interview with the BBC’s Emily Maitlis. Pictured: Andrew is interviewed on Newsnight
Meanwhile, Mike Tindall is also expected to receive an invite following his appearance on I’m A Celebrity
The decision to strip Prince Andrew of his official duties in January signalled there are no plans for him to return as a senior royal, and the latest move confirms Andrew faces a far tougher stance on the issue with Charles than he did with the Queen.
This followed the emergence of details of his friendship with paedophile Jeffrey Epstein, along with the disastrous Newsnight interview in which he denied sexually assaulting Virginia Giuffre.
Meanwhile, Mike Tindall is also expected to receive an invite following his appearance on I’m A Celebrity.
Fresh from watching Jill Scott being crowned Queen Of Jungle, the 44-year-old rugby player – who finished in fourth place on the ITV1 show – looked in high spirits as he spent quality time with family on Monday.
Mike was joined by wife Zara, 41, and their three children, Mia, eight, Lena, four and 20-month-old son Luca as they explored the theme park.
The Sussexes are not expected to receive an invite.