Prince Harry and Meghan Markle will no longer use their HRH titles or receive public funds, the Queen has said in a statement from Buckingham Palace.
The couple will pay back £2.4million of public money used to refurbish their home Frogmore Cottage, and continue to use it as their UK base.
The Palace said they won't divulge what security arrangements will be put in place around the family, and that the new arrangement would come into place from spring this year.
In her statement, the Queen said that ‘Harry, Meghan and Archie will always be much loved members of my family.’
And, after the public criticism Meghan has received, the Queen added she was ‘particularly proud of how Meghan has so quickly become one of the family.’
The statement from the Queen read: ‘Following many months of conversations and more recent discussions, I am pleased that together we have found a constructive and supportive way forward for my grandson and his family.
‘Harry, Meghan and Archie will always be much loved members of my family.
‘I recognise the challenges they have experienced as a result of intense scrutiny over the last two years and support their wish for a more independent life.
‘I want to thank them for all their dedicated work across this country, the Commonwealth and beyond, and am particularly proud of how Meghan has so quickly become one of the family.
‘It is my whole family's hope that today's agreement allows them to start building a happy and peaceful new life.’
A statement from Buckingham Palace, also published on Saturday evening, said: ‘The Duke and Duchess of Sussex are grateful to Her Majesty and the Royal Family for their ongoing support as they embark on the next chapter of their lives.
‘As agreed in this new arrangement, they understand that they are required to step back from royal duties, including official military appointments. They will no longer receive public funds for royal duties.
‘With The Queen's blessing, the Sussexes will continue to maintain their private patronages and associations. While they can no longer formally represent The Queen, the Sussexes have made clear that everything they do will continue to uphold the values of Her Majesty.
‘The Sussexes will not use their HRH titles as they are no longer working members of the Royal Family.
‘The Duke and Duchess of Sussex have shared their wish to repay Sovereign Grant expenditure for the refurbishment of Frogmore Cottage, which will remain their UK family home.
‘Buckingham Palace does not comment on the details of security arrangements. There are well established independent processes to determine the need for publicly-funded security.
‘This new model will take effect in the spring of 2020.’
Earlier this month, Harry and Meghan announced their decision to change their roles within the royal family and live between the UK and North America, by releasing a statement on a newly created Sussex Royal website - the decision was quickly branded Megxit.
It said: ‘After many months of reflection and internal discussions, we have chosen to make a transition this year in starting to carve out a progressive new role within this institution. We intend to step back as "senior" members of the Royal Family and work to become financially independent, while continuing to fully support Her Majesty The Queen.’
Meghan has since returned to Canada to be with their son, Archie, while Harry has remained in talks with the royal family.
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