The Queen has cancelled a 60th birthday bash she had planned for Prince Andrew and his charities in February and has downgraded it to a small family dinner, it was reported.

The blow comes as the Duke of York prepares to give up all his charity commitments suggesting he is unlikely to ever resume royal duties.

The Queen hosted a lavish reception at Buckingham Palace to mark the Prince of Wales’ 60th birthday in November 2008.

Prince Charles and the Duchess of Cornwall were joined by more than 400 guests including European royalty, friends and members of the prince’s charities.

It also emerged that American officials are examining procedures for a formal FBI interview with Andrew in Britain.

A source close to the Duke said he would be “happy to cooperate”.

A week after the Prince’s ‘car crash’ interview with Newsnight’s Emily Maitlis, more than 20 charities have already cut ties with him. He is expected to resign from up to 160 more within days.

Royal author Penny Junor said: “He is absolutely finished. if Andrew is no longer representing or supporting the monarch in any capacity or doing good charitably, what’s the point of him?”

Buckingham Palace sources said he would maintain his military roles for now but would not take part in any events.

There are signs of concerns in military ranks about the Duke thanks to his links with paedophile Jeffrey Epstein.

Buckingham Palace declined to comment on reports that Andrew’s birthday party had been cancelled.