The pair will, however, still be referred to as the Duke and Duchess of Sussex, as the statement put forth by the Palace refers to them using those titles.
"The Duke and Duchess of Sussex are grateful to Her Majesty and the Royal Family for their ongoing support as they embark on the next chapter of their lives," read the statement. "As agreed in this new arrangement, they understand that they are required to step back from royal duties, including official military appointments. They will no longer receive public funds for royal duties."
The statement also says that Harry, 35, and Meghan, 38, have "the Queen's blessing" and "will continue to uphold the values of Her Majesty."
It was also announced that the couple will repay the $3.1 million (£2.4 million) spent on the renovation of their home Frogmore Cottage.
"The Sussexes will not use their HRH titles as they are no longer working members of the Royal Family," continued the statement. "The Duke and Duchess of Sussex have shared their wish to repay Sovereign Grant expenditure for the refurbishment of Frogmore Cottage, which will remain their UK family home."
Reports indicated that the renovation, which included new heating, wiring and utilities," cost more than estimated in the name of making the home more family-friendly for their son, Archie.
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Rumors surrounding unnecessary refurbishments such as the addition of a "guest wing" and more circulated, but court documents state those rumors are untrue.