Former Prince Andrew had a consensual sexual encounter with Virginia Giuffre, said a report in Mirror citing an email from Epstein files.
In the unredacted email, the the late sex offender doesn't correct a journalist who stated as fact the former Duke of York had sex with Giuffre.
Before her death, Virginia Giuffre had said she was coerced into sex with Andrew, an allegation he has denied.
The emails show a reporter appearing to advise Epstein about his association with the royal as he "had consensual sex" with his accuser.
The latest revelation was included in the 3.5million tranche of emails released by Donald Trump's Department of Justice.
The Mirror wrote that the private exchange between Epstein and a New York Times reporter, which took place in January 2015, appeared to be the first written corroboration that Andrew had sex with Giuffre.
In the email, she is referred to as VR, incorporating her Roberts maiden name, by Landon Thomas Jr, who also advised Epstein about "separating" himself from Andrew due to the alleged encounter.
Thomas Jr states in the email: "I think the big issue is separating yourself from Andrew. I mean in the end he had consensual sex with VR.
The email is expected to be seen as some kind of relief to the royal family, which has been under immense scrutiny over Andrew's ties with Jeffrey Epstein.
Last year, King Charles III stripped Andrew of his remaining royal titles and asked him to vacate Royal Lodge, a royal residence which he had shared with former wife Sarah Ferguson for decades.
Andrew Mountbatten-Windsor recently moved to King Charles's Sandringham Estate after vacating Royal Lodge.
While pictures Andrew's objectionable pictures with unidentified woman, released in the latest batch of Epstein files, has caused more embarrassment to the royal family, the email exchange between the disgraced financier and the reporter is the first document in his favor.