The Queen a "period of transition" has been agreed for the Duke and Duchess of Sussex when they shall spend time in the UK and Canada.
It follows "very constructive discussions" at Sandringham involving Prince Harry and the Queen.
In a statement, Her Majesty said she has asked for "final decisions to be reached in the coming days".
Last week, the Duke and Duchess said they intended to "step back as 'senior' members of the Royal Family", aiming for a progressive, financially independent role within the institution.
The Queen said: "My family and I are entirely supportive of Harry and Meghan’s desire to create a new life as a young family.
"Although we would have preferred them to remain full-time working Members of the Royal Family, we respect and understand their wish to live a more independent life as a family while remaining a valued part of my family.
"Harry and Meghan have made clear that they do not want to be reliant on public funds in their new lives.
"It has therefore been agreed that there will be a period of transition in which the Sussexes will spend time in Canada and the UK.
"These are complex matters for my family to resolve, and there is some more work to be done, but I have asked for final decisions to be reached in the coming days."
As part of their annoucement last week, Prince Harry and Meghan confirmed they would continue to honour their patronages, which include the Invictus Games.
The competition was founded by Prince Harry for injured, sick and wounded Armed Forces personnel and veterans.
Two years ago, Prince Harry was formally appointed Captain General Royal Marines by the Queen, succeeding the Duke of Edinburgh.
He has also served in the Army for ten years, rising to the rank of captain and undertaking two tours of Afghanistan.
Cover image: MOD.