Sarah Ferguson and Prince Andrew are "the happiest divorced couple in the world".

Sarah Ferguson and Prince Andrew

Sarah Ferguson and Prince Andrew

The pair - who have daughters Princess Eugenie and Princess Beatrice together - ended their marriage in 1996 but continue to share a home at the Royal Lodge in Windsor and Sarah, 59, revealed they are happier than ever.

She told the Daily Mail newspaper: "We're the happiest divorced couple in the world. We're divorced to each other, not from each other. We both say it. We are completely compatible. Our bywords are communication, compromise and compassion.

"[Our wedding on] July 23, 1986 was the happiest day of my life. Andrew is the best man I know. What he does for Britain is incredible; no one knows how hard he works for his country."

When asked if they would consider remarriage, she answered: "So many people have asked me that, but we're so happy with the way we are right now. We enjoy each other's company; we allow each other to blossom. I know it sounds like a fairy tale but that's the way we are."

On October 12, their daughter Princess Eugenie married Jack Brooksbank in Windsor and Sarah admitted she found the whole occasion extremely emotional.

She said: "I always went to weddings and thought: 'Why is the mother-of-the-bride crying?' But I completely understand why now. It's because it's so amazing to think your daughter is now grown up, leaving home and starting her own life."

She also revealed she was missing her close friend and former sister-in-law, the late Princess Diana on the day.

She said: "I thought of absent friends and family; of Diana -- but she's with me all the time. What I miss most is her tinkling laughter.

"Diana was my best friend and the funniest person I knew. She had such timing and wit. It was a total joy to be with her because we just laughed and enjoyed life so much, and I know she would have loved the wedding."