Nancy, who separated from Sven in 2007, has lived in the luxury abode for five years and requested £3million from her former partner in order to move out. Sven initally rejected the demands but has now handed over £2million in order to get the flat back.
"Frankly I just to want to draw a line under this business and under this relationship," she told the Telegraph. "It makes me sad, but really Sven's no longer the man I fell for."
Swedish-born Sven, 65, bought the two-bedroom flat in Eaton Place for just under £1 million in 2005, but its value has since increased to £3.75 million. The flat sits on the same road used as the setting for TV drama Upstairs Downstairs and includes Elle McPherson, Joan Collins and the late Baroness Thatcher as its neighbours.
After several months of negotiation, Nancy, who is a fully qualified lawyer, has reportedly told friends she has agreed to move out after Sven to pay her £2 million.
Nancy, 51, will leave the apartment on Tuesday and is now believed to be moving into a room at The Ritz or The Berkley while she searches for another flat.