OP here, i dont know if it will show as im on a different device. Anyway, there are 2 major reasons i cant cut her from my life. I dont want to say what they are as it could be too identifying......

She's not your friend. A friend doesn't act like that full stop. She's trying to get his attention for whatever reason, to prove she's better than you, for attention or to try nab him for an affair. Tell him you don't like the way she acts around him that it's inappropriate and you're going to put in boundaries and need him on board to do the same. Be a team about this. Call her on it when she poses provocatively say loudly 'um Jess haven't u got yr own husband to cuddle up to leave mine alone thanks!' Etc. If you can't cut her off distance yourself a bit and try to see her without hubby. If she brings him up in conversation deflect it and if she continues again be straight and say 'what's with all the interest in my husband hey?' And seriously if she doesn't take the hint stop saying it jokingly and just say hey I'm not comfortable with the way you talk or act with hubby I find it really disrespectful to me and I don't know why u think it's ok. I really hope there is nothing going on between them it does sound like she has a crush on him at least

You don't need those mind games, she sounds a little psycho honestly. Cut her off.

Cut this bitch out of your life.

I think she’s being ridiculously inappropriate. Like others have said, she’s definitely not a friend. You could try letting her know that her actions/behaviours are making you feel really uncomfortable and unhappy. I actually don’t think the friendship is salvageable though.

There’s a possibility and sorry to say that there could be something already going on with them 2. I was good friends with my ex affair partners wife and found myself constantly asking her about him and redirecting all conversations to include him, I wanted to know more about his home life through her, the sorts of things that got him upset etc. She never picked up on anything. Keep your eyes open.

Tell her that you hit hubby up about having a threesome including her. He told you that if you (op) we’re having those thoughts that the friend was never to set foot in your home again.
Tell her that some of the shit that comes out of her mouth causes dramas because it make you think she wants you (op) sexually and cause disagreements with your husband.

Twist it all around. Apologise sincerely and tell her the friendship is over.

Or just stop inviting her over or accepting invitations. Sorry my phones fucked , we were shagging in the kitchen counter and it fell in the kitchen sink.

Or suggest to her she get some therapy. Tell her she’s clearly got issues she needs to deal with. Point out her crazy behaviour and tell her that her behaviour is affecting your friendship. Don’t tell her that it’s making issues for your husband and yourself. I would be more inclined to say something like hubby is sick of your shit. MAYBE We can met up for coffee sometime but we won’t be catching up all together.

She is not your friend. No matter what her motives, a friend does not act like that around a friend’s husband. Rude and inappropriate. Ditch her. Bet she will start furiously messaging your husband and he will see her crazy.

It sounds like she is trying to make you jealous. Some women are just so strange but this is what they like to do, just try and make people jealous. I'm not sure how to fix it other than to cut contact, if you say something to her she will assume you're jealous and her ego will explode and she will keep looking for more.

Distance the relationship and keep open communication with hubby