Prince Harry and his wife, Meghan, are quitting as working royals and will no longer use the titles "royal highness" or receive public funds for their work under a deal announced Saturday by Buckingham Palace.
Releasing details of the dramatic split, triggered by the couple's unhappiness with life under media scrutiny in the royal fishbowl, the palace said Harry and Meghan will cease to be working members of the royal family when the new arrangements take effect within months, in the "spring of 2020."
The couple will no longer use the prestigious titles His Royal Highness and Her Royal Highness, but they are not being stripped of them.
They will be known as Harry, Duke of Sussex and Meghan, Duchess of Sussex. Harry will remain a prince and sixth in line to the British throne.
The agreement also calls for Meghan and Harry to repay 2.4 million pounds ($3.1 million) in taxpayers' money that was spent renovating a house for them near Windsor Castle, Frogmore Cottage. The use of public funds to ready their home had raised ire in the British press.
The announcement came after days of talks among royal courtiers sparked by Meghan and Harry's announcement last week that they wanted to step down as senior royals and live part-time somewhere in Canada.
The couple's departure is a wrench for the royal family, but Queen Elizabeth II had warm words for them in a statement Saturday.
The 93-year-old queen 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.''
"I recognize 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," Elizabeth said.
"It is my whole family's hope that today's agreement allows them to start building a happy and peaceful new life," she added.
Despite the queen's kind words, the new arrangement will represent an almost complete break from life as working royals, especially for Harry. As a devoted Army veteran and servant to the crown, the prince carried out dozens of royal engagements.
It is not yet clear whether Harry and Meghan will continue to receive financial support from Harry's father, Prince Charles, who used revenue from the Duchy of Cornwall to help fund his activities and those of his wife and sons.
The duchy, chartered in 1337, produced more than 20 million pounds ($26 million) in revenue last year. It is widely regarded as private money, not public funds, so Charles may opt to keep details of its disbursal private.
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.
The withdrawal of Harry from royal engagements will increase the demands on his brother, Prince William, and William's wife, Kate, the Duchess of Cambridge.
Buckingham Palace did not disclose who will pay for the couple's security going forward. It currently is taxpayer-funded and carried out primarily by a special unit of the Metropolitan Police, also known as Scotland Yard.