The details emerged after the Queen said she was not happy but agreed that the couple could quit and move to Canada with eight-month-old, Archie.
The Queen said she supported Prince Harry and Meghan's "desire to create a new life as a young family" in a statement.
“Today my family had very constructive discussions on the future of my grandson and his family,” the statement read.
“My family and I are entirely supportive of Harry and Meghan’s desire to create a new life as a young family.
“Although we would have preferred them to remain full-time working Members of the Royal Family, we respect and understand their wish to live a more independent life as a family while remaining a valued part of my family."
The statement continued: “Harry and Meghan have made clear that they do not want to be reliant on public funds in their new lives.
“It has therefore been agreed that there will be a period of transition in which the Sussexes will spend time in Canada and the UK.
“These are complex matters for my family to resolve, and there is some more work to be done, but I have asked for final decisions to be reached in the coming days," she concluded.
Meghan has been in Canada with Archie since leaving the UK last week after the couple's bombshell announcement took the world, and royal family, by surprise.