Buckingham Palace said under the new arrangement agreed with Harry and Meghan they are "required to step back from royal duties" and will no longer receive public funds for royal duties, adding: "This new model will take effect in the Spring of 2020."
The Queen said "following many months of conversations and more recent discussions" the royal family has found a "constructive and supportive way forward" for Harry, Meghan and Archie.
She described her pride in " how Meghan has so quickly become one of the family".
She added: "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.
"It is my whole family's hope that today's agreement allows them to start building a happy and peaceful new life."
READ MORE: Meghxit has burst the bubble of royal illusion
The pair and their son will no longer receive public funds and will stop using their HRH titles.
Although they will not use their HRH titles, they will still retain them.
Harry, who was born a prince of Wales, remains a prince.
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