"We have had to make this decision reluctantly," the Duke of York said. "Our priority is a stable educational environment for our children."

Our priority is a stable educational environment for our children

Prince Andrew

The school's former headmaster Richard McDonald was arrested earlier this year over child sex allegations.

Princess Beatrice will now be attending St George's School in Ascot, Berkshire, near her Sunningdale home.

Its headmistress welcomed their newest pupil, who will start there in September.

Joanna Grant Peterkin said: "We are delighted that the Duke and Duchess of York have chosen St George's for the next stage of Princess Beatrice's education."

The Duke and Duchess of York's other daughter, 10-year-old Eugenie, had also been due to start at the Aiglon School, in September 2001.

�17,000 fees

Education at the exclusive college, founded 50 years ago, is based on the English curriculum, but its 300 pupils, aged between nine and 18, come from 50 different countries.

Fees start at about �17,000 a year.

The school is based on the educational principle of self-reliance, developed by Kurt Hahn.

He also founded Gordonstoun, a private school in north-east Scotland, where several members of the Royal Family have been educated.

The Duke of Edinburgh, a former Gordonstoun pupil, sent Prince Charles, the Duke of York and Prince Edward there.

Aiglon school is set in the Swiss Alps

The Princess Royal's children, Peter and Zara Phillips, were also pupils at the school.

Prince Andrew said he and his wife both fully supported the ethos of Aiglon College.

"We are equally certain Aiglon will overcome their current issues and will emerge stronger and we remain committed to their educational experience," he said.

Aiglon has had many famous pupils including the children of actors Roger Moore and Sophia Loren.

A Palace spokesman said the Queen had been informed and understands the reasons for Yorks' decision.

'Immensely proud'

When Princess Beatrice passed her entrance exam to Aiglon in February, the Duke of York said he was "immensely proud" of his children.

"We have done exhaustive research into which school to send them to," he wrote on a Palace website.

"In the end we feel the opportunities offered by Aiglon, and the teaching and community philosophy are exceptional, to say nothing of the languages available."