PRINCE HARRY and Meghan Markle will no longer use their HRH titles or receive public funds for royal duties, Buckingham Palace announced today.

The pair will also pay back the £2.4 million refurbishment of Frogmore Cottage, which will remain their home in the UK.

In a statement, the Queen said the decision over the couple’s future had been reached following “many months of conversations and more recent discussions”.

She said: “Harry, Meghan and Archie will always be much loved members of my family.

“I recognise 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.

“I want to thank them for all their dedicated work across this country, the Commonwealth and beyond, and am particularly proud of how Meghan has so quickly become one of the family.

“It is my whole family’s hope that today’s agreement allows them to start building a happy and peaceful new life.”

Harry and Meghan will step back from royal duties under the new arrangement, including official military appointments.

The will maintain their private patronages and association but will no longer formally represent the Queen.

A statement from Buckingham Palace said: “The Sussexes will not use their HRH titles as they are no longer working members of the Royal Family.

“The Duke and Duchess of Sussex have shared their wish to repay Sovereign Grant expenditure for the refurbishment of Frogmore Cottage, which will remain their UK family home.”

The announcement of the Duke and Duchess of Sussex’s new arrangement comes following a meeting between senior royals on Monday.

The meeting took place after the royal couple issued a statement outlining their intentions to step back as senior royals and aims to become financially independent.

The new model will come into effect in the Spring.

Dr Shola Mos-Shogbamimu, a lawyer and women’s rights activist whose recent media appearances on the subject of the racism Meghan has been subjected to have gone viral, congratulated the pair.

She tweeted: “Bravo Harry and Meghan! Go forth and be happy! Now the haters should please shut up! No longer using HRH title. Will pay back cost of refurbishing cottage. Are you happy now? Doubt it..bet they’ll have more petty and petulant nonsense to say!”

Prior to today’s announcement the pair said they will split their time between the UK and North America.

Following today’s update, ITV News royal editor Chris Ship tweeted: “They will spend majority of their time in North America not the UK.”