Meghan Markle, Prince Harry and new baby Archie are set to gain their own residence at Buckingham Palace following their move to Frogmore Cottage in Windsor.
The Duke and Duchess of Sussex will be expected to use the Palace while carrying out their London-based duties, the Mail on Sunday reports.
The couple moved to Frogmore Cottage from Kensington Palace last month, just in time for the birth of their son following a $6 million renovation of the official residence.
But with their royal roles often bringing the pair to the capital, a source informed the paper that they will be granted a second home within Buckingham Palace.
The arrangement is standard procedure for royals living outside of London. Prince Andrew and Prince Edward also have their own quarters inside the Palace, which is shared by the Queen.
Meghan and Harry's temporary home is expected to be ready by the end of the year — but it is not yet known which quarters the couple will be given.
While Frogmore Cottage is only 48 kilometers from the Palace, a traffic-heavy route means a London base is essential for the Sussexes to carry out their engagements in the capital.
The new parents made the move to Windsor after breaking away from the royal household at Kensington Palace, the home of the Duke and Duchess of Cambridge and their three children.
Despite reports Meghan and Prince Harry were eager for a more private life, royal insiders suggested the move was down to a "clash" between Meghan and fellow royals.
Royal biographer Angela Levin told the Mail on Sunday: "Meghan is beautiful, intelligent and ambitious, and is intent on proving these qualities, even at the risk of angering the palace.
"I can reveal that Buckingham Palace, unsettled by Meghan's determination to do things her own way, has already taken decisive action to control her activities.
"Yet Meghan has aroused the suspicion of some Palace insiders because of her apparent disregard for such long-established royal values as caution and discretion.
"The 12 months since she got married have been far from straightforward. She has been unable to prevent long-standing family disagreements becoming headline news and has lost a number of staff."
The news raises doubt over whether the couple will be moving to Africa for work, as has been speculated. There were also rumours they could buy a second home in Meghan's former home of Los Angeles.