In this photo taken from video Britain's Prince Harry and Meghan Markle talk about their engagement during an interview in London. Picture: Pool via AP

London - Britain's Prince Harry and his US fiancee Meghan Markle will marry in a chapel at Windsor Castle near London in May, the royal family said on Tuesday.

"As with all members of the royal family, Windsor is a very special place for Prince Harry, and he and Markle have regularly spent time there over the last year and a half," Kensington Palace, the royal residence in London where they are currently staying, said in a statement.

Read: Will Meghan Markle really be the first mixed-race royal?

Harry, 33, and Meghan, 36, will marry in the castle's St George's Chapel are "delighted that the beautiful grounds of Windsor Castle will be where they begin their lives together as a married couple."

Read more: Breaking News: Prince Harry and Meghan Markle are engaged!

They want the wedding to be "a celebratory moment for their friends and family" but are also working on ways to "allow members of the public to feel part of the celebrations," the statement said.

Also read: Prince Harry charts his love for Meghan Markle

The royal family will pay for the main expenses of the wedding, including the church service, music, flowers, decorations and the reception, it said.