Queen Elizabeth II and the Duke and Duchess of Sussex, Prince Harry and Megan
The Queen has agreed to a "period of transition" in which the Duke and Duchess of Sussex will spend time in Canada and the UK.
She says she is supportive of their desire for a new role but would have preferred them to remain full-time working royals.
She expects final decisions to be made in the coming days.
Senior royals have been in talks about Prince Harry and Meghan's role after they said they wanted to step back from their royal duties.
In a statement, the Queen said the talks at Sandringham, which also involved the Prince of Wales and the Duke of Cambridge, had been very constructive.
The talks took place as Prince Harry and Prince William issued a joint statement denying false claims that their relationship had been damaged by bullying on the part of the elder brother.
Both Prince Harry and Meghan spoke of the difficulties of royal life and media attention in recent months, with the duke saying he feared his wife would fall victim to the same powerful forces that led to his mother's death.
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