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Stephen Day said in a letter to three Whitehall departments he was causing "serious damage" to the Royal family and to Britain.
It comes after the Prince met the Queen to discuss his links with convicted paedophile Jeffrey Epstein, according to Sky sources.
US billionaire Epstein was sentenced to 18 months in prison in 2008 for soliciting a minor for prostitution.
Sky News understands the Queen and Duke of York met recently and part of that discussion was to deal with the negative issues surrounding him.
There is no suggestion at the moment that it was an extraordinary meeting.
Prince Andrew has known Epstein since the early 1990s and met as recently as December in New York.
The prince has been strongly criticised by Republic, the anti-monarchy group, for a lack of judgment.
Republic have called for Andrew to be stripped of his role as the UK's trade envoy as a result.
The Duke and Queen are very close and meet several times a week.
He values her opinion more than anyone else's.
Whatever happens in the near future, whether he decides to stay on as trade envoy or step down, it will on the Queen's advice.

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