The Duchess of York, who recently admitted she was on the brink of bankruptcy, has been forced to make her staff redundant, it was reported.

The Sun said that Sarah Ferguson sacked her team after amassing huge debts.

It is believed that 10 people were made redundant from the 50-year-old's staff, including full-time office staff and domestic help.

A spokesman for the Duchess of York refused to comment on the story.

In May, Ms Ferguson was caught in a cash-for-access scandal when she accepted money from an undercover reporter posing as a business tycoon in exchange for an introduction to her ex-husband, the Duke of York.

During an interview with US chatshow queen Oprah Winfrey, the former royal painted a picture of herself as a woman living beyond her means while her financial position worsened. Ms Ferguson, who has seen a number of business ventures stall recently, would not say how much money she owed, only stating she was "substantially" in debt, and added she was considering filing for bankruptcy.

Her money problems increased to the point where she was forced to live with Prince Andrew at his home, Royal Lodge in Windsor Great Park, because she could not afford the rent on her own house.

She said: "We are divorced and I don't want to keep being this burden on him."

She would not confirm how much she received from her ex-husband in their divorce settlement - rumoured to be £15,000 a year - but said she opted for congeniality over cash.

"I chose friendship with the family and I wanted friendship with the boss (Queen), she's the most wonderful grandmother."

It is thought that Ms Ferguson is now concentrating her efforts on her life in the United States.

A spokesman for Prince Andrew said: "The Duke of York is very supportive of the Duchess during this difficult time."