Prince Harry and Meghan Markle, the Duke and Duchess of Sussex, are to give up their 'Royal Highness' titles.
Buckingham Palace has announced the couple will also no longer accept public funds for royal duties and will pay back tax payer's money used for the refurbishment of their Windsor mansion Frogmore Cottage - a sum said to be £2.4million according to the BBC.
Frogmore Cottage will remain their family home.
As well as the loss of their HRH titles, Harry and Meghan will also no longer formally represent the Queen but will maintain their private patronages and associations.
Her Majesty the Queen released a statement alongside the Palace's release praising the outcome of the talks between the Sussexes and the rest of the Royal Family.
The Queen said: "Following many months of conversations and more recent discussions, I am 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 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."
The Duke and Duchess announced plans to step back from royal duties last month, with their intention to become financially independent.
There was much debate over how reliant they would remain on public funds, particularly with regards to their security.
The Palace said it does not comment on the details of security arrangements and there are 'well established independent processes to determine the need for publicly-funded security'.
The new model will take effect in the spring of 2020.