The British Royal Buckingham Palace said that Prince Harry and his wife Meghan would no longer be active members of the royal family and would not use the title "royal highness".
"Harry, Meghan and (their son) Archie will continue to have love in my family," Queen Elizabeth said in a statement.
The palace added that Harry and Meghan will not receive any public funds from now on and will return approximately 2.4 million pounds of taxpayer money, which was spent on renewing their residence near Windsor Castle.
"After several months of discussions ... I am pleased that together we have found a constructive and supportive path forward for my grandson and his family," Queen Elizabeth said in a statement.
"I would like to thank them for their work around the country ... I am proud that Megan has become one of the family very quickly."
"The Duke and Duchess of Sussex are grateful to Her Majesty and the royal family for their continued support towards their new chapter in their lives," the statement added.
"And as this new arrangement was agreed upon, they know that they have to renounce their royal duties, including military appointments. They will not receive any public funds for royal duties," the statement added.
The couple surprised the royal family, by announcing that they give up their royal duties to spend more time in North America, and "work to become financially independent", after several reports of tension in the royal palace and lack of harmony within the family after Megan joined it.
The Duke of Sacks and his wife said, in a statement, that they intend to live between the United Kingdom and North America, and that this year will mark a transition period towards a new life on which they promised more details about later.