Prince Harry "certainly didn't engage in anything sexual" with a girl in Las Vegas the night of his nude photo scandal.
A UK newspaper reported that the British royal hooked up with Carrie Reichert while he was drunk.
Prince Harry vehemently denies having anything to do with Carrie.
"When Harry was quizzed about Carrie, he had absolutely no idea who she was," a source told Radar Online.
"He doesn't believe he met her on that now infamous night and certainly didn't engage in anything sexual with Carrie.
"It's an opportunist move on her part, she clearly wanted to make money off his name and somebody bought it.
"As soon as the story broke, Clarence House contacted the British Press and told them the story was untrue and not to consider following up on Carrie's story.
"With Prince William and Kate Middleton about to embark on a royal trip the last thing the British newspapers want to do is upset the royal family.
"In the event that something negative is published, the royal correspondents from the newspaper concerned would be pulled from the trip and even possibly blacklisted from future royal engagements."
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