Prince Andrew will be promoted to the rank of vice-admiral in the Royal Navy when he turns 55 next week.
The Duke of York's appointment was announced in the latest Royal Navy appointments in the London Gazette.
A Buckingham Palace spokesman said it was "approved by the Queen in line with long-standing convention covering military promotions" for royals.
Pressure group Republic branded the move "offensive to our armed forces" and a "self-serving royal indulgence".
Last month, Prince Andrew reiterated denials issued by Buckingham Palace after a US woman alleged that she was forced to have sex with him when she was 17.
Virginia Roberts alleges in court documents she was forced to do so by financier Jeffrey Epstein, a convicted sex offender.
Buckingham Palace has previously said the claims against the prince, who is fifth in line to the throne, are "categorically untrue" and lack "any foundation".
The Duke of York stepped down as UK trade envoy in July 2011 following controversy over his friendship with the American financier but appeared at a World Economic Forum reception in Davos, Switzerland, last month.
Prince Andrew to become vice-admiral
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