The Duke and Duchess of Sussex will officially step back as senior members of the royal family and split their time between the UK and Canada.
Buckingham Palace made the historical announcement following Monday's crisis talks at Sandringham where Her Majesty, Prince Charles and Prince William discussed Prince Harry's future in the royal family.
The 93-year-old monarch said: "Today my family had very constructive discussions on the future of my grandson and his family.
"My family and I are entirely supportive of Harry and Meghan's desire to create a new life as a young family.
"Although we would have preferred them to remain full-time working members of the Royal Family, we respect and understand their wish to live a more independent life as a family while remaining a valued part of my family."
After expressing her disappointment that the couple would be quitting royal life, she confirmed there would be a 'transitional period' while the final deal is hammered out.
"Harry and Meghan have made clear that they do not want to be reliant on public funds in their new lives."
"It has therefore been agreed that there will be a period of transition in which the Sussexes will spend time in Canada and the UK."
"These are complex matters for my family to resolve, and there is some more work to be done, but I have asked for final decisions to be reached in the coming days."
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See the full list of Oscar nominations...
Paul Burrell has spoken for the first time ahead of Prince Harry's showdown with The Queen, Prince Charles and Prince William at Sandringham today, after the Duke and Duchess of Sussex announced their plans to step down as 'senior royals'.
The 61- year-old said he Prince Harry wants to follow in his mother's footsteps and become 'more of a humanitarian than a royal' but feels sorry that the siblings are no longer close.
Paul told Good Morning Britain: “I’m hoping William can build a strong bridge towards his brother during this meeting and bring him back into the fold as his brother."
"I do feel sorry for William and Harry not having that bond which they once had. Obviously, when their mother died, they were cemented together and inseparable. I feel sorry for that and their mother would be sad, too."
A spokesman for the American State Department secretary has said the US government has remained 'very clear' on their position regarding Anne Sacoolas' extradition to the UK.
Anne Sacoolas, who was charged with the death of 17-year-old British teenager Harry Dunn by dangerous driving, is facing calls for her to be extradited to the UK from the United States where she currently has diplomatic immunity.
When asked whether America will send Mrs Sacoolas back to the UK, Morgan Ortagus said “that won’t happen” but offered her condolences to the Dunn family.
"I think the Foreign Minister is very clear on what our position is on this as it relates to the diplomatic immunity of our diplomat who was involved in a tragic accident," she told reporter Richard Gaisford.
She added: "The President met with the family, and we've offered our deepest condolences - no one ever supports the tragic loss of life."
Foreign Secretary Dominic Raab is set to have a meeting with the Secretary of State Mike Pompeo about the issue on Friday.
The spokesperson said the UK government is aware of why America will not help with the extradition of Anne Sacoolas but did not give any details.
Pressed on why it can't happen, Ms Ortagus said: "I'm not going to get into it, you're government is aware."
Harry’s parents have said they cannot move on until Mrs Sacoolas has come back to the UK.
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The Royal Family have been left "deeply disappointed" by Harry and Meghan's move to ‘step back’ from royal duties.
It was reported that the Queen and Prince Charles were only recently informed of the Sussexes intention to explore their public positions as members of the monarchy, and were not aware the statement was due to be issued.
The Duke and Duchess of Sussex said they will split their time between both the UK and North America, and that their decision comes after "many months of reflection and internal discussions".
Buckingham Palace has warned Harry and Meghan's decision is 'complicated' and the talks are still at the early stage.
ITV News’ Royal Editor Chris Ship joined Ben Shephard and Susanna Reid to explain the significance of the couple's announcement.
The Duke and Duchess have announced their plans to step back as senior members of the royal family to become financially independent.
The couple said the decision comes after "many months of reflection and internal discussions".
In a statement released on Wednesday night, the couple said they will continue to 'fully support' the Queen and will split their time between the United Kingdom and North America, where they spent several weeks on holiday in the lead up to Christmas.
They said the move would "enable us to raise our son with an appreciation for the royal tradition into which he was born, while also providing our family with the space to focus on the next chapter, including the launch of our new charitable entity."
Harry and Meghan also said they would share "full details of this exciting next step in due course".
The Palace has since responded with another statement in which they called the situation 'complicated.'
The controversial documentary, which made headlines after the Duke of Sussex alluded to a rift with Prince William and discussed their struggles with fame, was criticised for overshadowing their charity work.
Now, in an interview on Good Morning Britain, the ITV journalist has defended the couple's honesty, claiming the decision to discuss their personal life was his idea.
“It is worth saying that the documentary was my idea," Tom told Piers Morgan and Susanna Reid.
"They were very consistent all the way through that they wanted it to be about their work in Africa.
"I said repeatedly, 'Look, I’ve made that documentary several times. I’m going to do it about your work in Africa, which is interesting and all the rest of it, but I think, you’ve had an extraordinary year and I think it would look weird if I come along and I don’t ask you anything about how it’s really going’ and I pushed that and pushed that consistently."