Britain's Prince Harry and his wife Meghan Markle will no longer be known as His and Her Royal Highness.
The duo who had recently announced their decision to step back as 'senior' royals, have now agreed to give up their royal titles and public funding as part of a settlement with the Queen that lets them spend more private time in Canada.
Earlier in January, Harry and Meghan had rocked the monarchy with an announcement made without consulting any senior royals from the sovereign downwards.
"After many months of reflection and internal discussions, we have chosen to make a transition this year in starting to carve out a progressive new role within this institution," the royal pair said, referring to the monarchy.
They went on to say that they intended to "launch ... our new charitable entity," about which they would provide more details in the future.
This announcement led to a week of intense private talks aimed at managing the fallout of their announcement.
Now, on Saturday, Buckingham Palace made the historic announcement.
"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," the 93-year-old monarch said in a statement.
"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."
Her comments referred to battles with the media that prompted Harry and Meghan -- known until now as the Duke and Duchess of Sussex -- to sue several newspapers in October over intrusions into their private lives.
The Queen said she was "particularly proud of how Meghan has so quickly become one of the family" and wished the couple "a happy and peaceful new life".
Another statement from Buckingham Palace added that the Duke and Duchess of Sussex "understand that they are required to step back from Royal duties, including official military appointments."
"They will no longer receive public funds for Royal duties," the statement said.
"The Sussexes will not use their HRH titles as they are no longer working members of the Royal Family," the statement added.
The couple will now formally be known as "Harry, The Duke of Sussex" and "Meghan, The Duchess of Sussex".
The statement also revealed that Harry and Meghan have shared a wish to repay the Sovereign Grant expenditure incurred in the refurbishment of their residence, Frogmore Cottage. This will continue to remain their UK family home.
The taxpayer money spent on the project was about 2.4 million pounds (USD 3.1 million).
However, there was no mention of the security arrangements that may be nesseciated by the split.
"Buckingham Palace does not comment on the details of security arrangements. There are well established independent processes to determine the need for publicly-funded security," the statement said.
The couple are seeking to register the "Sussex Royal" brand as a global trademark for their future enterprises.
They two are dedicated to environmental causes and are looking to develop their charitable foundation as part of a "progressive new role".
Media reports said Harry would probably join Meghan and Archie on the west coast of Canada this coming week.
The Queen's final ruling on her grandson's future drew immediate comparisons to King Edward VIII's abdication in 1936. Edward married the American socialite Wallis Simpson the following year and spent much his remaining life abroad.
According to the statement issued by the Palace, the "new model" will take effect in "the Spring of 2020".
(With inputs from agencies)