The Queen has agreed a “period of transition” in which the Duke and Duchess of Sussex will spend time in Canada and the UK.
She said she is “entirely 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, she said.
Senior royals have been in talks about Prince Harry and Meghan’s role after they said they wanted to “step back”.
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”.
“My family and I are entirely supportive of Harry and Meghan’s desire to create a new life as a young family,” she said.
‘More independent life’
“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.”