Prince Andrew accused of using N-word in talk with aide: Report

England's Prince Andrew has been accused of using the N-word during a 2012 conversation about trade policy, according to a report.

The Duke of York – who was accused of having sex with one of financier Jeffrey Epstein’s accusers, Virginia Roberts Giuffre, when she was 17 – allegedly made the racist remark to one of David Cameron’s top aides at the time, Rohan Silva, who has a Sri Lankan background, the Evening Standard reported.

Silva was meeting with Andrew and an employee at Buckingham Palace and had asked him if he thought the trade department “could be doing a better job.” Andrew replied: “Well, if you’ll pardon the expression, that really is the n----- in the woodpile.”

Prince Andrew, Duke of York in 2011 in London, England (Photo by Dan Kitwood/Getty Images)

The outlet reported that palace sources “categorically denied” the claims.

Silva, who is an entrepreneur and columnist for the Evening Standard, remembered “how I walked blinking into the sunshine outside Buckingham Palace, reeling at the prince’s use of language.”

Epstein and the Duke of York -- who were friends for more than a decade -- were blasted on the front page of the New York Post in February 2011.

"Randy Andy with NYC sex creep," the cover reads, along with the unflattering title: "PRINCE & PERV."

New York Post front page, Feb. 21, 2011. (New York Post, FILE)

By that time, the multimillionaire was a registered sex offender who had served just over a year in prison on state prostitution charges for allegedly paying girls as young as 14 for sex.

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Epstein – who was reportedly worth more than $550 million – was indicted in July of this year on charges of sex trafficking of minors and conspiracy to commit sex trafficking of minors, according to court records.

He was found unconscious on the morning of Aug. 10, in his jail cell at lower Manhattan’s Metropolitan Correctional Center. The New York City medical examiner determined Epstein had committed suicide by hanging.

Days later, a federal judge dismissed Epstein's criminal charges.

Authorities are still investigating potential co-conspirators. Meanwhile, several accusers have filed civil lawsuits against the financier's estate.

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On Thursday, officials announced plans to create a compensation program to benefit his alleged sex abuse victims.

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The program will be overseen by a trio of administrators – including prominent attorney Ken Feinberg – who say they will seek input from the accusers and their attorneys before it is finalized. Feinberg was one of the people who handled the September 11th Victims Compensation Fund and was enlisted in July to oversee Boeings' victim fund.

Meanwhile, the Duke said in a recent BBC interview that he had “no recollection of ever meeting [Giuffre].”

"That couldn't have happened because the date being suggested, I was at home with the children. On that particular day ... I was at home. I was with the children. I'd taken Beatrice to a Pizza Express in Woking for a party ... Going to Pizza Express in Woking is an unusual thing for me to do," Prince Andrew said.

He could not explain a photo in which he is shown embracing Giuffre.

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Andrew also said he denied regretting his friendly relationship with Epstein.

The Duke's ex-wife, Sarah Ferguson, came to his defense in the wake of his continued media attention surrounding his relationship with Epstein.

“Andrew is a true and real gentleman and is stoically steadfast to not only his duty but also his kindness and goodness of always seeing the best in people,” she said in a Friday post to her Instagram page. She posted a similar, truncated message to her Twitter. “I am deeply supportive and proud of this giant of a principled man, that dares to put his shoulder to the wind and stands firm with his sense of honour and truth.”

FOX Business' Evie Fordham contributed to this report.