Britain's Duchess of York apologised for her ‘serious lapse in judgment’ and admitted her financial situation is ‘under stress’ .
Her statement comes after she was filmed offering to sell access to ex-husband Prince Andrew for £500,000.
The News of the World said Sarah Ferguson promised to introduce an undercover reporter posing as a wealthy businessman to the Prince, who has been the UK's special representative for international trade and investment since 2001.
The paper claims she was filmed on Tuesday night accepting a $40,000 cash down-payment and it quotes her as saying: ‘I can open any door you want.’
It alleges that she asked for the main £500,000 (€575,000) payment to be wired to her UK bank account.
On the video soundtrack, Ms Ferguson apparently tells the undercover reporter: ‘£500,000 when you can, to me, open doors’.
The paper said despite the Prince knowing nothing about the deal, his ex-wife claimed to have discussed it with him: ‘Andrew said to me, 'Tell him £500,000'.
‘He knows that he's had to underwrite me up to now because I've got no money. So if you want to meet him in your business, look after me and he'll look after you ... you'll get it back tenfold.’
However, she said tonight: 'I can confirm that The Duke of York was not aware or involved in any of the discussions that occurred.'
The paper claims the 50-year-old Duchess met the fake businessman on two occasions - first at a New York hotel and then at the exclusive Mosimann's dining club in Belgravia, London.
It said she was then chauffeured with the reporter to a Mayfair flat where she was shown on the video apparently shaking on a deal to introduce him to her former husband.
The Duke and Duchess of York divorced in 1996 but have remained close friends.
According to the paper, Sarah Ferguson spoke of their relationship, saying: ‘We're the happiest divorced couple in the world.’
Buckingham Palace refused to comment on the allegation printed by the News of the World.
Sources have said Sarah Ferguson is 'devastated' and 'regretful' after she was filmed apparently offering to sell access to her ex-husband.
