The Duke and Duchess of Sussex will also repay around £ 2.4m in tax money they have previously received for the renovation of their residence, Frogmore Cottage, the BBC writes.
Earlier in January, the British Prince and Princess announced that they wanted to step back from their roles as "senior" royalty and announced at the same time that they will split their time between the UK and North America in the future.
"Harry, Meghan and Archie will always be much-loved members of our family," said Queen Elizabeth in a statement.
She goes on to say that she is aware of the intensive guarding that Harry and Meghan have endured over the past two years and that she supports their desire for a more independent life.
The changes will take effect in spring 2020.