Prince Harry and Meghan will no longer use the titles "royal highness" or receive public funds under a deal struck for them to step aside as senior royals, Buckingham Palace says.
The palace said Harry and Meghan will cease to be working members of the royal family when the new arrangements take effect in spring 2020.
They will be known as Harry, Duke of Sussex and Meghan, Duchess of Sussex.
The couple will no longer use the titles His Royal Highness and Her Royal Highness, but they are not being stripped of them. Harry will 
The agreement also calls for Meghan and Harry to repay STG2.4 million ($A4.5 million) in taxpayers' money that was spent renovating their home near Windsor Castle.
Buckingham Palace says Prince Harry and his wife, Meghan, will no longer use the titles "royal highness" or receive public funding. Source: AP
The couple's departure is a wrench for the royal family, but the Queen had warm words for them on Saturday.
She said she was 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," the monarch said in a statement.
"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.
Queen Elizabeth II and her grandson, Harry. Source: Getty Images Europe
"It is my whole family's hope that today's agreement allows them to start building a happy and peaceful new life."
The announcement came after days of official talks sparked by Meghan and Harry's announcement last week that they wanted to step down as senior royals and live part-time in North America.
The details of the deal solidify the couple's dramatic break from life as working royals.
Harry and Meghan leave Canada House in London, earlier this month. Source: AP
Army veteran Harry will have to give up the military appointments he has as a senior royal.
While he and Meghan will no longer represent the Queen, the palace said they would "continue to uphold the values of Her Majesty" while carrying out their private charitable work.
Buckingham Palace did not disclose who will pay for the couple's security going forward. It currently is taxpayer-funded.
"There are well established independent processes to determine the need for publicly funded security," the palace said.
