The court date for Prince Harry's damages lawsuit against the owners of The Sun newspaper has been postponed amid news that the two sides are engaged in potential settlement talks after years of legal battles.

The duke's lawyers are due to start an eight-week trial on Tuesday on charges that journalists at News Group newspapers used illegal means to pry into his private life, which executives allegedly then covered up.

Before they could begin to present their case, they asked for an adjournment.

However, after hours of confidential discussions and no sign of a final agreement that would change the nature of the trial, the judge asked both sides to get started - leading them both to say they would ask the Court of Appeal to overturn the order.

The practical effect of their objections was that the case was postponed until at least 10am on Wednesday - meaning the two sides had more time to negotiate.

It was unclear what was brought to the table during the 11th hour negotiations.

Prince Harry has repeatedly said he wants a trial to hold "accountability" for other victims of NGN journalists' illegal collection of private information.

NGN denies any wrongdoing by The Sun or that executives across the group covered it up.

Rupert Murdoch's empire has long acknowledged that journalists at the News of the World, which closed in 2011, did use illegal techniques but has always denied the phenomenon was widespread.

This morning, lawyers for Prince Harry and former Labor MP Lord Tom Watson - the other remaining claimant - twice asked Mr Justice Fancourt to postpone the hearing of the case, meaning the court did not sit until 2pm.

Prince Harry's lawyer David Sherborne said there were "good prospects" of reaching a deal that would save court time.

"We are very close, but there is an issue of timing and getting instructions," he said.

"That's not the only factor."

Anthony Hudson KC of News Group Newspapers added that both sides needed more time due to the "time difference" and said both parties were involved in "reconciliation dynamics".

Judge Fancourt, who has repeatedly criticized both sides for long delays and squabbling over how the case should proceed, refused to give them more time, saying the case should begin even as negotiations continued behind the scenes that could change the outcome of the case. The nature of the trial.

The judge said: "I do not believe that if there had been a genuine will to resolve this matter it would not have been possible today."

Lawyers for News Group newspapers then asked the court to sit privately without the media present to learn more about what happened.

The judge refused, saying he would not hear the case "in secret", before Prince Harry's team and NGN's lawyers both said they would ask senior judges to overturn the order.