"Discussions with The Duke and Duchess of Sussex are at an early stage," a Palace spokesman told Fox News late Wednesday. "We understand their desire to take a different approach, but these are complicated issues that will take time to work through."
The spokesman added that "nothing is being ruled or ruled out."
Earlier on Wednesday, the Duke and Duchess of Sussex announced that they are pulling back significantly on royal duties. They said their decision came "after many months of reflection and internal discussion" in a statement posted on their verified Instagram account.
"We have chosen to make a transition this year in starting to carve out a progressive new role within this institution," the couple shared. “We intend to step back as ‘senior’ members of the Royal Family and work to become financially independent, while continuing to fully support Her Majesty The Queen. It is with your encouragement, particularly over the last few years, that we feel prepared to make this adjustment."
"We now plan to balance our time between the United Kingdom and North America, continuing to honor our duty to The Queen, the Commonwealth, and our patronages," they continued. "This geographic balance will 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."
"We look forward to sharing the full details of this exciting next step in due course, as we continue to collaborate with Her Majesty The Queen, The Prince of Wales, The Duke of Cambridge and all relevant parties. Until then, please accept our deepest thanks for your continued support," added the couple, who will reportedly keep their royal titles.
Harry and Meghan made their first public appearance on Tuesday since returning to the U.K. from Canada, where they spent a six-week leave of absence away from royal duties with their 7-month-old son, Archie, during the holiday season.
Fox News' Stephanie Nolasco contributed to this report.