The King of Sweden has removed five of his grandchildren from the country's Royal Court in a historic step which has had Swedish republicans celebrating with Champagne.

In his surprise decision on Monday, King Carl XVI Gustaf ruled that the children of Princess Madeleine and Prince Carl-Philip would from now on be treated as private citizens.

This means they will no longer have the title of Royal Highness, will not be expected to carry out official duties, and will no longer receive a share of the 'apanage', the royal family's state-funded annual allowance.

"We have a large royal family. When you include the next generation, there are nearly ten people in line to the throne," Fredrik Wersäll, Marshal of the Realm, told journalists after the announcement. "They cannot be expect to have their living costs covered to any extent by the grant to Royal Court."

After the announcement, Lisa Bjurwald, chair of Sweden's republican association, told the Expressen newspaper that the decision was "a major victory in the republican battle". "Its definitely worth cracking open a little Pommac or mini-Champagne to celebrate," she said.