Prince Harry and Meghan Markle's refusal to accept their invitation to King Charles' Coronation until their demands are met threatens to plunge the occasion into "chaos", a palace insider says.
The Duke and Duchess of Sussex are locked in tense negotiations with the Royal Family over their attendance at the historic celebrations.
An insider told OK! that a major sticking point was how the Sussex children Archie, three, and one-year-old Lilibet were to be included on the day.
And the source said Harry, 38, and Meghan, 41, were also pushing for places on the Buckingham Palace balcony alongside the senior members of The Firm.
The Sussexes have already announced they have received an invitation to the Coronation - but the couple are yet to confirm their attendance for the big event on 6 May .
A Palace insider told us their failure to officially accept their invitation until their demands were met could plunge the entire event into chaos.
The source said: "The Palace are trying to wrap up negotiations as quickly as possible because they can't go right up to the wire. It could lead to chaos.
"It could very well be that it ends in stalemate, and they won't attend. But the Palace is doing everything in its power to not let that happen.
The source added that the inclusion of Archie and Lilibet at the official Coronation at Westminster Abbey had “never been a bone of contention” because small children were not expected to attend such an event “due to restlessness and tantrums”.
“However, what the Sussexes' are pushing for is for them to be included with the rest of the family at the Palace later that day,” the insider said.
"It's also Prince Archie's birthday on Coronation day so they would like some kind of nod to that at a lunch or drinks reception. Even if it's just a happy birthday mention."
The source added the Sussexes are asking Palace aides to include them on the balcony with the rest of the Royal Family once the King has been crowned to wave to the crowds.
The insider said: “Once the King has been crowned, there will be a Coronation procession that will start at Westminster Abbey and end at Buckingham Palace. Once the procession reaches the Palace, the King will take to the balcony and wave at the crowds with the rest of the royal family members and their children.
“This is where Harry and Meghan have requested inclusion.”
The current balcony arrangement stands as working royals only.
The Duke and Duchess’ attendance at the King’s Coronation has been in doubt as a result of the damaging allegations levelled at senior members of the Royal Family in the Sussexes’ controversial Netflix documentary and Harry’s bombshell book Spare.
Royal expert Tom Bower recently told us he believed there was no way back for the couple following the “hostile and vitriolic” claims - adding it would be a mistake for them to attend the historic event.