Thames Valley Police has accepted that the search warrants it used to search Andrew Mountbatten-Windsor's homes earlier this year were unlawful, the High Court has heard.
The force said it accepted the court decision to issue warrants under the specific piece of legislation used was incorrect when they were given permission to search the former prince's properties on 19 February.
Andrew Mountbatten-Windsor was arrested by Thames Valley Police on suspicion of misconduct in public office. He denies any wrongdoing.
The warrants were issued before his arrest and his lawyers are challenging their lawfulness.
They have used a judicial review to challenge the actions of the chief constable of the force and the Central Criminal Court.
His arrest in February arose after the US Department of Justice published documents which suggested he had forwarded confidential information to the convicted sex offender when Mountbatten-Windsor was a UK trade envoy in 2010.
He has consistently denied any wrongdoing in relation to Epstein.
The court heard on Thursday that Thames Valley Police took possession of documents and electronic devices when they raided Andrew's homes.
The conditions for the warrants were that there had to be reasonable grounds for believing that any documents used for business or in a paid or unpaid role in which an undertaking of confidence had been given should not be seized.
Thames Valley Police now accepts the judge who granted the warrants could not have been sure of this.
A spokesperson for Thames Valley Police stated that the agreement leading to the quashing of the warrants specifically concerns a court decision on the legal basis for the warrants and does not constitute a judgement on the force's ongoing investigation.
The police confirmed that they provided the court with all necessary information and paperwork, following the correct legal processes.
The force accepts that the initial court's decision to issue the warrants under the specific piece of legislation was incorrect and that the warrants must therefore be legally quashed.
Legal proceedings are currently ongoing to decide how the material seized during the searches will be managed and whether it can lawfully be retained to support the ongoing investigation.
The force said its investigation into alleged misconduct in public office by a man in his 60s from Norfolk remains ongoing, and it continues to pursue all reasonable lines of enquiry to effectively and fairly progress this investigation.
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