Prince Harry has apologised directly to a Pakistani army officer whom he called a "Paki" in a home video, a newspaper reported on Tuesday.
Harry, whose 2006 video has caused a storm in Britain, telephoned Ahmed Raza Khan - his former fellow-cadet at Sandhurst military school - in Pakistan to "clear the air", The Sun reported.
In the film, Harry introduces a sleeping Officer Cadet Khan as "our little Paki friend" and tells a white recruit that he looks like a "rag-head" - a derogatory word for Arabs and others who wear turbans.
Decorated at Sandhurst and now a lieutenant in the Pakistani Frontier Regiment, Khan is said to have accepted the Prince's explanation after a call was set up by a mutual friend.
A source close to Harry told The Sun: "Since the footage came to light, Harry's main concern has been that he may have offended a friend."
The remarks made by Harry, who is third in line to the British throne, have been condemned across British society, including all senior politicians, led by Prime Minister Gordon Brown.
Harry, who has already issued a public apology, is now set to receive a "stern dressing down" from his Commanding Officer, Lt Col Harry Fullerton.
Although Khan's father, retired banker Mohammad Yaqoob Khan Abassi, has said he "profoundly condemned" the words, Harry, 24, is unlikely to face formal disciplinary charges as Khan has not lodged a complaint.
