Sarah Ferguson, Britain's Duchess of York, has allegedly been caught in a newspaper sting carried out by Britain's News of the World. 

The tabloid released secretly filmed footage on Sunday in which the duchess allegedly agrees to $700,000 in exchange for access to her former husband, Prince Andrew.

In the film, the newspaper reporter, who posed as a wealthy businessman, gives Ferguson $40,000 as a cash deposit.

Ferguson appeared to say that the money would buy access to Andrew, who is a UK trade envoy.

She goes on to explain how she wants the rest of the money transferred to an account of her choosing.

Richard Fitzwilliams, commentator on the British Royal Family, told Al Jazeera it was an embarrassing and uncomfortable situation for all concerned.

"She is still very close to her ex-husband, the Duke of York. It's disgraceful but also rather delusional," he said.

"She implies that her husband is complicit in these matters and of course this is not the case.

"She really didn't understand the dignity and responsibility of royal duty [when she was married to Andrew] and that is exactly what is lacking when you look at the video."

The Duchess is said to be devastated and regretful over the revelations.

Al Jazeera's Nazanine Moshiri has this report from outside Buckingham palace in London.