Elected members of the City of London Corporation have agreed to write to Andrew Mountbatten-Windsor inviting him to relinquish his freedom of the city.
Britain's former prince, the brother of King Charles, received the honour in 14 years ago.
Mr Mountbatten-Windsor was arrested in February on suspicion of misconduct in public office.
Mr Mountbatten-Windsor has come under mounting pressure over his behaviour and ties to the late sex offender Jeffrey Epstein.
In a statement a spokesperson for the local authority said: "Andrew Mountbatten-Windsor received the freedom of the City of London in 2012 by virtue of patrimony, which is inherited as the child of a freeman and constitutes a legal right.
"Applications via patrimony are not considered or endorsed by our elected members, and there is no effective legal mechanism to remove this type of freedom.
"Elected members have today agreed to write to Mr Mountbatten-Windsor, inviting him to formally relinquish the freedom.
"They will consider the response received, if any, at a future meeting and determine what action may be taken."
