Queen Elizabeth II has given her blessing to grandson Prince Harry and his wife Meghan's wish for a more independent future following crisis talks involving the most senior members of the Royal family.

Key points: The Queen and family held talks with Prince Harry at Sandringham estate

The Queen and family held talks with Prince Harry at Sandringham estate Meghan, who is currently in Canada, is believed to have joined by phone

Meghan, who is currently in Canada, is believed to have joined by phone The Queen said there will be a "period of transition" for the couple

"My family and I are entirely supportive of Harry and Meghan's desire to create a new life as a young family," the 93-year-old monarch said in a statement.

"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."

She said there would be a transition period during which the couple would spend time in Britain and Canada, adding there was more work to be done on finalising future arrangements for the couple.

"Today my family had very constructive discussions on the future of my grandson and his family," the Queen said in a statement.

"Harry and Meghan have made clear that they do not want to be reliant on public funds in their new lives.

"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."

It remains unclear who or how the couple will pay for a transatlantic lifestyle.

The family meeting at the Queen's rural Sandringham estate involved Prince Charles and his sons William and Harry.

The Duke and Duchess of Sussex announced they wanted to step back as senior royals. ( AP: Daniel Leal-Olivas )

Meghan is currently in Canada with their infant son Archie. She's believed to have joined the discussion by telephone.

The Duke and Duchess of Sussex surprised the rest of the Royal family on Wednesday by publicly announcing they wanted a "new working model" that would allow them to spend more time in North America.

Princes slam 'potentially harmful' coverage

Ahead of the crisis talks, Prince William and Prince Harry spoke out against a newspaper report describing a severe strain in their relationship, calling the story offensive and potentially harmful.

Though the statement did not name the newspaper, the Times of London had a front-page story about the crisis in which a source alleged that Prince Harry and Meghan had been pushed away by the "bullying attitude from" Prince William.

The joint statement insisted that the story was "false.''

"For brothers who care so deeply about the issues surrounding mental health, the use of inflammatory language in this way is offensive and potentially harmful," the statement said.

The shock announcement has exposed divisions in the Windsor family and prompted soul-searching over what it means to be royal in the 21st century.

The couple consulted neither the Queen nor Prince Charles on the announcement made on Instagram and their own website, a step seen as impertinent and premature by a family whose roots go back through a thousand years of European history.

Reuters