The image of the Duke of York sits behind a framed snap of the disgraced billionaire at his former home in Palm Beach, Florida.
Andrew, 61, has previously denied making regular visits to the property.
But witnesses claimed the scandal-hit royal spent ‘weeks at a time’ in the mansion, branded Epstein’s ‘lair’.
The photograph has been obtained by The Sun, with a source claiming it was on show ‘like a trophy’.
An insider is said to have told the newspaper: ‘Epstein cultivated powerful friends and would show them of in pictures around all of his homes.
‘This is incredibly damaging for Prince Andrew because it shows how highly Jeffrey prized his friendship with a senior member of the royal family.
‘His picture was shown off in Jeffrey’s home like a trophy.’
During his disastrous Newsnight interview in 2019 Prince Andrew admitted visiting the Florida mansion – but denied making repeated trips.
He told Emily Maitlis: ‘I definitely did not visit his Palm Beach house three or four times a year, absolutely not.
‘In total, probably four times in total throughout the time that I knew him.’
Epstein purchased the six-bedroom pad, close to former President Donald Trump’s Mar-a-Lago estate – for $2million in 1990.
A developer paid $13.3m for the mansion, which has since been demolished, after Epstein’s death.
Andrew has been forced to keep a low profile in the wake of allegations by Virginia Roberts Giuffre that he sexually assaulted her, including rape in the first degree, when she was 17, a minor under US law.
Ms Roberts, now 38, claims she was trafficked by Epstein and forced to have sex with the Duke in 2001.
He has vehemently denied the claims – with his lawyers filing papers asking a New York judge to throw the case out.
But the Duke will reportedly be kept away from all events to mark The Queen’s Platinum Jubilee in June next year amid concerns they could clash with his sex abuse case.
The plan is for him to be “invisible during celebrations” in a bid to spare the Queen from further embarrassment.
Andrew is said to harbour hopes he could return to royal duties, despite his shattered reputation.
However, the prospect of a comeback looks extremely unlikely after reports suggested nephew and future king, Prince William, is ‘no fan of his uncle’.
Epstein’s alleged madam, Ghislaine Maxwell, is due to stand trial with the jury selection process underway in New York last week.
The judge is expected to choose 12 jurors and six alternates on November 29, with the trial expected to last around six weeks.