Spanish media say Queen Sofia is taking legal action against the American website Ashley Madison for 'damage to her honour and dignity'.
The company published a doctored picture of the smiling Queen, her arms seemingly draped around a semi-naked young man, first in February, and then again last week.
It appeared alongside a slogan saying, in Spanish: 'Now you no longer have to spend the night alone'.
The advert was printed for a second time last week in a newspaper published by the same company, which was distributed across the capital of Madrid by scantily-clad models.
It is believed to be in reference to wide-spread allegations that her husband, Spain's King Juan Carlos, has conducted several extra-marital affairs during their marriage.
The advertising regulatory board, Autocontrol, agreed that the advertisement should never have been published and ordered it to be removed, reports Spain's El Mundo newspaper.
The Queen is using a private lawyer in the case, and will not be spending public funds.
The same firm last year used a picture of Juan Carlos, flanked by two scantily-clad models, with the slogan: 'The best place to 'hunt' for an adventure'. No legal action was taken by the Monarch.
Ashley Madison - who uses the slogan motto is 'Life is short, Have an affair' - was launched in the U.S. in 2001 and now has its own portals in 25 countries.
The news comes in the same week as a Spanish waiter and a Belgian housewife lost legal bids to prove they are the illegitimate children of 74-year-old Juan Carlos.
Two Spanish courts rejected their demands to make him take a paternity test. They declared that under the country's constitution 'the monarch cannot be held accountable'.
Alberto Sola Jimenez, 56, from Catalonia, and Ingrid Sartiau, 46 from Belgium, joined forces earlier this year in after learning of each others' claims.
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