The grandmother of the mystery blonde pictured with Mike Tindall has said the furore over their night out is "making a mountain out of a molehill."
"They used to see each other years ago and they are now friends. It is totally innocent," said Jessica Palmer's grandma, Joan Turton.
Jessica, a British expat, has apparently fled her home in Sydney to escape attention after hitting the headlines over her encounter with Zara Phillips' new husband, reports the Daily Telegraph.
The England rugby player said he returned to his hotel room alone after drinking with the 29-year-old and his teammates in Altitude bar in Queenstown, New Zealand.
He apologised "for his incorrect recollection" after it emerged that they went on to a second bar together.
They dated while Jessica studied at Leeds University and Mike played for Bath shortly before he began his relationship with the Queen's granddaughter.