The Queen said the family "respect" their desire for a "new life" but would have liked them to stay "full-time working members".
The Queen says she has had "constructive" talks with other senior royals on the future of Prince Harry and Meghan and will allow the couple to spend time in Canada and the UK during a "period of transition".
The final decisions on how the pair will organise their time and finances will be made in the coming days, the monarch said in a statement released by Buckingham Palace.
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