“It is my whole family’s hope that today’s agreement allows them to start building a happy and peaceful new life.”
The palace said Harry and Meghan will stop 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 agreement will also see the pair repay $A4.5 million in taxpayers' money that was spent renovating their home, Frogmore Cottage.
Buckingham Palace also released a statement explaining what’s next.
“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.”
The statement also revealed, “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.”