Buckingham Palace said in a statement: "With the Queen's approval and agreement, the Duke of York's military affiliations and royal patronages have been returned to the Queen.
"The Duke of York will continue not to undertake any public duties and is defending this case as a private citizen."
This comes after it was confirmed that Prince Andrew will face a civil case in the US over allegations he sexually assaulted a woman when she was 17.
A federal court judge in New York City ruled that a lawsuit brought by Virginia Giuffre can move forward.
Giuffre has accused convicted sex offender Jeffrey Epstein - who died by suicide in August 2019 - and his one-time girlfriend Ghislaine Maxwell of arranging and forcing her into having sex with Prince Andrew in 2001, when she was 17.
Giuffre claims her alleged abuse at the hands of the pair involved being lent out to powerful men.
In December, Maxwell was convicted by a jury in US federal court on five sex trafficking-related counts, which carry a potential custodial sentence of up to 65 years' imprisonment.
Andrew has repeatedly denied Giuffre's allegations and his legal team recently argued to get her lawsuit dismissed, citing a 2009 deal and $500,000 settlement she agreed with Epstein.
However, the judge in New York recently ruled that the case could continue.