Britain's Prince Harry, right and Meghan, the Duchess of Sussex. (John Stillwell/PA via AP)

Prince Harry and Duchess Meghan are set to leave Kensington Palace for a new home in Windsor.

The couple currently reside in the two-bedroom Nottingham Cottage at Kensington Palace in London but plan to move to the 10-bedroom Frogmore Cottage on the grounds of Windsor Castle next year before their first child is born.

Kensington Palace said in a statement: "The Duke and Duchess of Sussex will more to Frogmore Cottage on the Windsor Estate early next year as they prepare for the arrival of their first child. The couple have lived at Nottingham Cottage since their engagement last year. Windsor is a very special place for Their Royal Highnesses and they are grateful that their official residence will be on the estate. The Duke and Duchess's official office will continue to be based at Kensington Palace." 

Harry, 34, and Meghan, 37, held their wedding reception at Frogmore House, situated across from their new cottage, which was gifted to them by Queen Elizabeth. 

The announcement comes after it was claimed that Prince Harry and Duchess Meghan were planning a "separate court" from his brother Prince William and William's wife Duchess Catherine.

Royals author Sally Bedell Smith told PEOPLE: "The arrival of Meghan has changed the dynamic of the relationship in a fairly significant way. It is inevitable and practical because it gives Harry and Meghan some freedom to build up their own collection of interests and charities.

"Meghan has very strong views on what she is interested in and that may be what Harry shares, but not what William and Kate share.

"They have brought many charities working in the same sector together to empower them and lend their positions. But they will increasingly follow their own respective interests.

"I think it really is just a shift in priorities and interests. William is a husband and father of three and his focus is primarily on them, and Harry will soon be a father.

"Each of them will continue the very strong representative of the Queen in carrying out tasks and assignments that she, and probably their father, wants them to do. They are going to be sharing in this diffusion of activities on behalf of the Queen."