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Prince Harry is said to have phoned Ahmed Raza Khan to say sorry for calling him a 'Paki'.
The royal was condemned for referring to his fellow comrade as 'our little Paki friend' on a video made at Sandhurst Military college three years ago.
Harry, 24, also said another squaddie resembled a ‘rag-head’, a derogatory term for an Arab, and made a spoof call to his grandmother, the Queen.
‘Since the footage came to light, Harry’s main concern has been that he may have offended a friend,’ a source tells The Sun.
Ahmed, now a Lieutenant in the Pakistani army's Frontier Regiment, apparently accepted Harry's apology.
Clarence House refused to make any further comment.