The Royal at the centre of the gay sex blackmail trial has declared the accusations of his sexuality as “spurious”.

The Royal, referred to only as witness A told the court in a statement: “As far as these comments about my personal and professional life are concerned, I can only say they are spurious and without foundation.”

Two men, Ian Strachan and Sean McGuigan stand accused of attempting to blackmail the unnamed Royal.

Mr Strachan today told the court that he was actually entrapped to protect a multi-million pound deal.

He claimed that a friend of the Royal tried to entice with with £50,000 ($100,000) in order to handover a series of videotapes that allegedly contained proof of the Royal’s sexual impropriety. He added that the friend called it a “perfectly legitimate business deal”.

In questioning today, Mr Strachan also defended allegedly attempting to sell the story to a tabloid newspaper. “D was planning on going to the press himself and I thought we would steal his thunder,” he said. “expose him in the way he was thinking about exposing A and other members of the royal family in a much more sensational way.”

Since The Sunday Times broke the story in October there has been widespread speculation as to the identity of the Royal Family member who is the victim of the alleged blackmail.

He has been named on TV in the US and Australia and on numerous websites.

The British press are legally restrained from revealing the identity of the person, though it has been reported that he does not carry out any public duties.

Buckingham Palace has refused to comment on the alleged blackmail plot, saying only that it is a matter for the police.

Mr Strachan and Mr McGuigan are both pleading not guilty to making demands with menaces, contrary to the Theft Act 1968.

The trial continues.