St James's Palace will not pursue a complaint with the Press Complaints Commission over the photos of Prince Harry in Las Vegas.
The Sun was the only British publication to print the photos, despite warnings from the Royal family that it would be an invasion of the Prince's privacy.
The Palace said it would "not be prudent" to pursue the matter further.
A spokeswoman said: "Having considered the matter now for a number of weeks, we have decided not to pursue a complaint."
"We remain of the opinion that a hotel room is a private space where its occupants would have a reasonable expectation of privacy."
She added: "The Prince is focused entirely on his deployment in Afghanistan, and pursuing a complaint relating to his private life would not be appropriate at this time and would prove to be a distraction."
The pictures of Harry partying in his hotel room in Las Vegas were first released on US gossip site TMZ.
They are believed to have been taken on a camera phone by one of Harry's guests in the suite.
Image: © Getty