Harry and Meghan will not be making the trip from Canada for his uncle's 60th birthday on February 19.
Neil Sean, a UK-based royal correspondent who appears on US TV, told Fox News that "it's not very nice for the Queen".
He said: "A mole [told] me it’s an open secret they declined the invite but it’s not very nice for the Queen as, whatever people say and think, he is [still] her son and she wanted her close family around her.
"The reason given is that they already have commitments on the day but also plan to send a gift/card and a video message to be played at the party."
The royal broadcaster claimed the Queen had made plans for a big party for her third child's birthday, one which would also celebrate his charity work.
But he claims to have been told by a palace source that Her Majesty is now "understood to be holding only a small family dinner."
Andrew has been hit by scandal over his relationship with paedophile billionaire Jeffrey Epstein, his car-crash interview with BBC Newsnight and claims he had sex with Virginia Giuffre when she was aged 17, which he denies.
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