They continued: "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. It is with your encouragement, particularly over the last few years, that we feel prepared to make this adjustment.
"We now plan to balance our time between the United Kingdom and North America, continuing to honour our duty to The Queen, the Commonwealth, and our patronages. This geographic balance will enable us to raise our son with an appreciation for the royal tradition into which he was born, while also providing our family with the space to focus on the next chapter, including the launch of our new charitable entity.
"We look forward to sharing the full details of this exciting next step in due course, as we continue to collaborate with Her Majesty The Queen, The Prince of Wales, The Duke of Cambridge and all relevant parties. Until then, please accept our deepest thanks for your continued support."
The move follows the duo’s six-week Christmas break holiday in the North American destination of Canada and insiders say they would like to make it their second home.
Harry and Meghan have had plenty of support from Canadian and American friends, in stark contrast to their perceived sidelining in royal circles recently.
The couple are said to feel at home in Canada, where they have a large number of friends. Meghan worked on her former TV show Suits in the country.
Harry and Meghan are said to be unhappy that Prince William and Kate Middleton have taken such a central role in the future of the monarchy, and they are now keen to strike out and create their own path.
"It has been made very clear by the institution that the Sussexes are not central to the future plan," a source told The Sun.
"Just look at the picture released last week of the Queen with the Prince of Wales, Duke of Cambridge and George."
A number of royal fans supported the pair in their news.
"Happy for you both, follow your hearts and do what’s best for you and your family," one wrote.
Another said: "A trailblazing example of self care. Kudos and best wishes!"
But others were not so understand. One said: "Funny how you decide to spend £2million of tax payers money on Frogmore Cottage and THEN decide to become financially independent?! Handy that. And the decide you won’t even live in it half the time!"
Another wrote: "Can’t have it all. Stepping back as senior royals they need to relinquish their titles and their accommodation which the country spent a fortune on!"