A jury has been shown an email from News Of The World's Clive Goodman to editor Andy Coulson detailing payments to palace police.
Sky's Mark White said according to the prosecution, the 2003 email is an admission that the pair had been involved in criminality by paying police officers for information regarding the royal family.
A redacted version of the email by Goodman said: "Andy, one of our royal at policemen at St James's Palace has obtained the brand new green book, the telephone directory with all the home numbers of the royal family and their household staff. Incredibly useful.
"The standard price is £1,000. So far, so good, but I had a heck of a time getting cash credits signed off by Stuart (Kuttner) earlier this week to pay a Kensington Palace copper.
"I'm not criticising Stuart at all but these people will not be paid in anything other than cash because if they're discovered selling stuff to us they end up on criminal charges, as could we."
Former NOTW royal editor Goodman, managing editor Kuttner and editor Coulson are one of eight defendants on trial for phone hacking at the Old Bailey along with former News International chief executive Rebekah Brooks.
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