Prince Harry and Meghan Markle will marry at St George's Chapel in Windsor Castle next May.
Speculation had reached fever pitch after the loved-up pair announced their engagement yesterday.
In a statement the royal palace said: "The marriage of His Royal Highness Prince Henry of Wales and Ms Meghan Markle will take place at St George's Chapel, Windsor Castle in May 2018.
"Her Majesty The Queen has granted permission for the wedding to take place at the Chapel.
"The Royal Family will pay for the wedding."
The palace also announced that Meghan plans to become a British citizen.
As the couple make preparations for their big day, Meghan, a protestant who went to a catholic high school, will be both baptised and confirmed, ready for the religious ceremony.
Harry's communication's secretary Jason Knauf said Windsor was a "very special place" for Harry, and that he and Meghan had spent time there together during their whirlwind romance.
Mr Knauf said the couple, who were grateful for the warm wishes from the public, would be putting their stamp on their wedding day.
"They will be making sure it reflects who they are as a couple," he added.
The gothic 15th century chapel will be a stunning and intimate backdrop for the couple's big day.
It usually holds around 800 guests compared with the 2,000 capacity of Westminster Abbey where the Duke and Duchess of Cambridge wed in 2011.
The the couple posed for the cameras outside Kensington Palace yesterday after announcing their plans to get hitched next year - and they may soon be heading to a town near you.
The couple's first royal engagement will be in Nottingham on Friday.
It was revealed that the romantic prince proposed with a ring he designed himself, which features three jewels, the centre of which is a diamond from Botswana.
The outside two stones are diamonds from the personal collection of Diana, Princess of Wales.
The smitten couple have enjoyed a whirlwind romance since being introduced in summer 2016.
Prince Harry said he had no idea who his actress bride-to-be was before the pair were set up by a mutual friend.
In their first ever joint interview, Harry told the BBC: "I'd never even heard of her until this friend said 'Meghan Markle' - I was like 'right OK give me a bit of background.'
"I'd never watched any of Suits. I was beautifully surprised when I walked into that room and saw her.
"I thought I'm really gonna have to up my game, sit down and make sure I have good chat."
The actress will move in with her prince in Kensington Palace's Nottingam Cottage.
Sadly it's not believed the couple's wedding day will be declared a Bank Holiday with Downing Street saying there are "no plans".