Sweden's King Carl XVI Gustaf, left, touches the head of Prince Nicolas held by Princess Madeleine as Christopher O'Neill looks on, during the young prince's christening ceremony in 2015. File picture: Jonas Ekstromer /TT News Agency via AP

Stockholm - Princess Madeleine gave birth to a baby girl in Stockholm, adding a new member to Europe's largest royal family.

"Mother and child are doing well," the Palace said on Friday.

The new royal offspring, who was born at 12:41 am Friday morning (2341 GMT on Thursday) is the third child of Princess Madeline and husband Christopher O'Neill who is said to have been present during the birth.

"We're very excited about the new addition to our family," said O'Neill after the birth.

Princess Madeleine is the youngest child of King Carl XVI and Queen Silvia. However Madeline's newborn baby is unlikely to ever ascend to the throne, as there are already nine in line before her.

These include Princess Victoria and her two children; Prince Carl Philip and his two sons; and her two older siblings Nicolas, aged 2, and Leonore, aged 4.

The Swedish family outnumbers all other European royal families in terms of offspring. The new princess is the seventh grandchild of the reigning monarchs in Sweden. Their eldest grandchild, Princess Estelle, turned six in February.

Madeleine and O'Neill, a US businessman, had lived in London and New York before the birth of their second child. O'Neill stays away from the royal limelight and even rejected an official royal title after the couple's wedding in June 2013.