The family intends to relocate from the US to a private, non-royal residence thought to be outside London later this month.
The Duke and Duchess’s status as non-working royals and private individuals will remain unchanged.
It is understood that the King was not aware of the move until last Sunday, but he is said to be pleased his younger son is coming home and is looking forward to spending more time with him and his family.
The Telegraph understands Harry – who misses the UK and wants to be closer to his wider family – hopes to regain the King’s trust by no longer discussing private family matters in public or giving television interviews.
Prince Harry has spent years revealing details about the monarchy and his personal life. However, the couple plan not to expose their children to the public eye and British media organisations have been urged by the regulator not to disclose the location of the new family home or the children’s school.
Security concerns
The Duke, whose own private security team claimed he was the focus of six terrorist plots, has long fought to be guaranteed police protection, but this has so far been rejected by the courts and the Home Office committee responsible for such decisions.
But the family’s return is set to prompt a review of taxpayer-funded security.
Two senior government sources told The Telegraph that the Royal and VIP Executive Committee (Ravec), the body that determines the security arrangements of high-profile figures, was likely to review the couple’s security arrangements in light of their plan to return to Britain, and that it might be easier to arrange protection when they are in the UK full-time.
Andy Burnham, the Prime Minister, said on Thursday that the Duke and Duchess’s security was a “private matter”, despite the potential cost for taxpayers if their security were reinstated.
No 10 sources said Mr Burnham’s comments reflected the fact that the Sussexes were private citizens, not working royals, and that their security in California was privately funded.