Britain's Prince Andrew has settled a US lawsuit by Virginia Giuffre accusing him of sexually abusing her when she was a teenager, potentially sparing him further embarrassment in a lurid case that helped precipitate his fall from grace.

The settlement, which includes an undisclosed payment, was revealed on Tuesday in a filing in Manhattan federal court, where Giuffre had sued the Duke of York last August. The prince did not admit wrongdoing in the settlement.

Giuffre's case had focused on Andrew's friendship with the late Jeffrey Epstein...