According to the publication the ACS offers an American curriculum and is also situated near the couple's future home, Frogmore Cottage, on the Windsor estate.
Prince William and Prince Harry both attended the prestigious Eton College for boys while Prince George is currently attending Thomas' London Day School.
However, despite the royal family's strong ties to a British style education in the past, the publication reports that the Duke and Duchess of Sussex want an alternative education for their child.
A source told E! News: "[Meghan and Harry] are thought to want a more diverse education for their child."
The source continued: "Meghan is also keen for her child to be fully aware of his or her American heritage."
Kensington Palace has not commented.