The News Of The World has suspended royal editor Clive Goodman following allegations of mobile phone hacking.
Staff at Clarence House reported suspected phone tapping to police
The journalist is due to appear in court next week charged with both conspiring to intercept and intercepting voicemail messages.
Mr Goodman, 48, from Putney, south London, has been suspended pending the investigation's outcome.
Members of the Prince of Wales' household had reported alleged phone security breaches to police.
Mr Goodman was held under Section 1 of the Regulation of Investigatory Powers Act 2000, under which the potential penalties are a maximum of two years in jail, a fine or both.
Glenn Mulcaire, 35, from Sutton, has also been charged in connection with the allegations.
Both men, who were released on police bail following the arrests, will appear at Horseferry Road magistrates' court next Wednesday.
A number of addresses were searched by police in connection with the allegations, including the offices of News International in Wapping, east London, as well as premises in Sutton and Chelsea.
Complaints by three staff at Clarence House sparked the initial inquiry.
The police investigation, led by the Anti-Terrorist Branch, is believed to have been widened and is examining whether public figures - including senior politicians, high-profile celebrities or members of another royal household - also had their mobiles hacked into.
Scotland Yard said the claims had "potential security implications", which was why the investigation was being handled by the anti-terrorist branch.