The couple, who will marry in spring next year, have been together since summer 2016.
Harry, 33, went public with their relationship a year ago, after the two had been together for four months secretly. He proposed to Meghan, 36, in London earlier this month, Kensington Palace said.
Meghan, who hails from America, is an actor most famous for her role in US legal drama Suits.
The official announcement said: ‘His Royal Highness The Prince of Wales is delighted to announce the engagement of Prince Harry to Ms Meghan Markle. The wedding will take place in spring 2018. Further details about the wedding day will be announced in due course.
‘His Royal Highness and Ms Markle became engaged in London earlier this month. Prince Harry has informed Her Majesty The Queen and other close members of his family. Prince Harry has also sought and received the blessing of Ms Markle’s parents.
‘The couple will live in Nottingham Cottage at Kensington Palace.’
The newly engaged pair have yet to reveal where the wedding will be held, but if they choose to wed in the UK there are three frontrunning options.
Most senior royals, as Harry is, marry at Westminster Abbey, St Paul’s Cathedral and Windsor Castle.
Both the Queen and the Queen mother were married at Westminster Abbey. More than a thousand years old, the gothic Abbey has held many royal ceremonies
St Paul’s Cathedral is where Charles and Diana were married in 1981, and also recently held the services for the Queen’s 80th birthday and her Golden Jubilee.
The left-field option is Windsor Castle, which would be more private and low key due to it’s more protected location. Prince Charles and Camilla, the Duchess of Cornwall, married there in 2005.
The couple will appear on UK national television tonight (November 27) to discuss their engagement and relationship so far.
The Queen had to give Prince Harry permission to marry Meghan, as he is fifth in line to the throne. The pair went to tea with the monarch a week after the Queen celebrated her own 70th wedding anniversary.
Her Majesty and Prince Philip said they are ‘delighted for the couple and wish them every happiness.’
Harry and his fiancee will move into Nottingham Cottage in the grounds of Kensington Palace, very near to William and Kate – maybe they’ll hit them up for babysitting duties after the third Royal baby is born around April. William and Kate said in a statement: ‘We are very excited for Harry and Meghan. It has been wonderful getting to know Meghan and to see how happy she and Harry are together.’
A traditionalist, Harry asked Meghan’s parents permission before popping the question. They divorced when Meghan was six.
They said: ‘Our daughter has always been a kind and loving person. To see her union with Harry, who shares the same qualities, is a source of great joy for us as parents.’
Harry and Meghan’s relationship has withstood a lot of hardship. A year ago, Harry issued a statement attacking the British media for introducing ‘racial overtones’ into their reporting of the relationship and spoke out against ‘the outright sexism and racism of social media trolls and web article comments.’
The soon-to-be-princess has written about her family history online, and describes herself as ‘half black and half white.’ Her father, Thomas, is white and her mother, Doria Ragland, is black.
The couple will most likely wait until William and Kate’s third baby is born around April to wed. After the baby is born, Harry will be sixth in line for the throne.
Meghan’s new title could be princess, or she may be given the title Duchess of Sussex when the pair marry.