William is pictured sitting on a gold pouffe next to wife Kate, with the couple resting a hand on the other's knee.
Prince George, eight, and Princess Charlotte, six, sit next to their parents, while three-year-old Prince Louis is sitting on what appears to be a sheepskin rug at his mother's feet.
Kensington Palace said the photograph was taken in Jordan earlier this year, but did not say what the nature of the trip was, when exactly it took place, or who was behind the camera.
On Twitter, the Cambridges said: "Delighted to share a new image of the family, which features on this year’s Christmas card."
Prince Charles and Camilla have also released their Christmas card photo, which was taken this year by Sam Hussein at Royal Ascot.
It shows the pair dressed in their formal attire for the races – Charles in top hat and grey suit, Camilla in cream hat and dress.
Charles, who is wearing a black face mask, is seen in the photo helping Camilla put on her cream-coloured mask.
William and Kate's Christmas card photo comes after the Duchess hosted a Christmas carol concert at Westminster Abbey where she promoted the “importance of simply being together.”
The duchess’s Together at Christmas service in London’s Westminster Abbey on Wednesday is being broadcast on ITV on Christmas Eve, having been switched from the BBC in the fallout over a BBC Two documentary about the Duke of Cambridge and the Duke of Sussex.
In a foreword in the Abbey's order of service, Kate wrote: "We have lost loved ones, seen our frontline workers placed under immeasurable pressure, and we have experienced heart-wrenching isolation from those we hold most dear."
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