Prince Harry and Meghan Markle - Duchess of Sussex will give up their royal titles as part of their decision to step down as senior members of Britain's royal family.
Queen Elizabeth II announced the details of the official agreement on Saturday, revealing the couple will no longer formally represent the monarch once the new arrangements take effect in the "spring of 2020".
As part of the deal, the pair will quit using its "royal highness" titles, and be known as Harry, Duke of Sussex and Meghan, Duchess of Sussex.
They also plan to pay back the $3.12 million (£2.4 million) of taxpayer funds used to recently refurbish their Frogmore Cottage property, which they will continue to use as their UK base.
The news emerges days after Harry sat down with his grandmother, The Queen, his father, Prince Charles, and brother, Prince William, for a two-hour summit at royal residence Sandringham Estate to discuss the couple's next steps following its wish to move away from the public eye and establish a more independent way of living with its baby son, Archie.
In her statement, the monarch declared: "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," the press release continued.
"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."
Harry, the son of Prince Charles and his late ex-wife, Diana, Princess of Wales, will remain sixth in line to the throne.
He and former actress Meghan, who wed in 2018, now plan to split their time between the UK and Canada, where they recently celebrated the holidays.