No Tassie island for Princess Mary: Palace

Palace officials have denied reports that Crown Prince Frederik of Denmark has purchased an island off Tasmania as a gift for his Hobart-born wife, Mary.

In a brief statement issued overnight a spokeswoman for the royal household in Copenhagen ruled out the acquisition.

"We can deny that HRH The Crown Prince has purchased an island off the coast of Tasmania," she told AAP.

An initial magazine report, replicated by various online publications on Monday, stated Frederik spent some $10 million on the island as a gift for his wife to celebrate her 45th birthday on February 5.