The Queen is said to be distressed by the row over Islamic law which she fears threatens to undermine the authority of the Archbishop of Canterbury and damage the Church of England, reports the Daily Telegraph.

As Supreme Governor of the Church of England she “has been dismayed by the controversy that the remarks have generated at such a difficult period in the history of the Established Church, which faces possible schism over the issue of homosexual clergy”. But she has not expressed any personal view on whether Dr Rowan Williams was right to say it was “unavoidable” that aspects of Sharia law could be incorporated into English codes of justice.

Her personal views can well be imagined, however, as can the Duke of Edinburgh’s.

The backlash to the Archbishop’s statement has been fierce and prolonged, with the vast majority opposing his views, including many moderate Muslims.

The Queen, who approved the appointment of Dr Williams on the recommendation of Prime Minister Tony Blair, takes her role as Supreme Governor very seriously.

A Royal source is reported as saying, “I have no idea what her view is on what the Archbishop said about Sharia law. But the Queen is worried, coming at such a difficult time in the Church’s history, that the fallout may sap the authority of the Church.”

Another Royal courtier said, “The whole thing has not been skilfully handled. It can only have undermined the authority of the Church.”

The Preb David Houlding, a Synod member and honorary canon of St Paul’s Cathedral, said: “We are very fortunate in having a Monarch who strongly supports the mission of the Church of England and I am sure she would want her Archbishop of Canterbury to be held in the highest regard by everybody.”

A Buckingham Palace spokesman declined to comment.