Prince William is the 'most upset' by his brother's memoir, while King Charles 'would like to have Prince Harry back in the family', according to a source close to the Royal Household.
The insider told PEOPLE: 'William is the one who is most upset and needs time to calm down. He has been painted as hotheaded and unsympathetic.'
They added that it's unlikely the father-of-three, 40, 'will back down' following the Duke of Sussex's attacks on the British Royal Family in his book Spare, which was released last month.
However, Charles, 74, is said to be keen for the situation to 'calm down' before his coronation on May 6, with the source saying: 'He would like to have Harry back in the family.
'If they don't sort it out, it will always be part of the King's reign and how he has left his family disjointed. He has had a reputation as a distant parent, and it would be awful for him for that to continue,' they added.
Last month it was revealed by the Mail On Sunday that the King has asked the Archbishop of Canterbury to broker a deal to allow Harry to attend his Coronation – but has met resistance from William
Charles wants Justin Welby to strike an agreement with his warring sons that would allow Harry and his wife Meghan to attend the Westminster Abbey ceremony in May, senior sources close to Lambeth Palace said.
Speculation has been rife about whether the Sussexes would attend the high-profile event since they stepped away from royal duties – and especially since the publication of Harry's tell-all memoir, Spare, that contained a string of wounding attacks on senior members of the Royal Family.
The King is said to believe that Harry and Meghan's absence at the coronation would be a greater distraction than their presence, so is prepared to make concessions to persuade them to attend.
But William is understood to be concerned that his brother will use the event to stage a 'stunt' that would overshadow the event.
Both Lambeth Palace and Buckingham Palace declined to comment at the time.
Mr Welby, who will officiate at the ceremony at Westminster Abbey, was first asked to act as an intermediary between William and Harry shortly after the Queen's death in September.
He has previously been dragged into the drama surrounding the Sussexes when Meghan claimed in a TV interview that he had secretly married them before their official wedding in 2018 – forcing him to clarify that the ceremony broadcast to the world was the legal marriage.
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