Queen Elizabeth has reportedly banned the Duke and Duchess of Sussex from using their "Sussex Royal" label after deciding to step down as working royals.

Following lengthy and complex talks, the Queen and senior officials are believed to have agreed it is no longer tenable for the couple to keep the word "royal" in their "branding" because "they simply cannot sell themselves as royals".

Harry and Meghan spent tens of thousands of pounds on a new Sussex Royal website to complement their Sussex Royal Instagram account. They also sought to register Sussex Royal as a global trademark for a range of items and activities, including clothing, stationery, books and teaching materials. In addition, they have taken steps to set up a new charitable organisation: Sussex Royal, The Foundation of the Duke and Duchess of Sussex.

But their plans may not be possible as it has now been made clear that they will need to "re-brand" without using the word "royal".

Though the details are still being thrashed out, it is understood the couple have accepted that, as part of their new working arrangements, they will not be able to use the Sussex Royal name as they had hoped.

Earlier this year, Harry and Meghan announced their decision to step down as senior working royals and pursue "financial independence". Following their shock announcement, there was a discussion between the Queen and all members of the family, including Harry and Meghan, and it is understood they all agreed that, in light of the Sussexes' decision to step back, their use of the word "royal" would come into question.

Now, as well as giving up their HRH titles for work purposes and abandoning official appointments and patronages – including Harry's military roles – the Sussex Royal brand will have to be abandoned.  

A source told the Mail: 'In many ways this is inevitable given their decision to step down, but it must surely come as a blow to the couple as they have invested everything into the Sussex Royal brand The Queen would have had little choice, however.

"The Sussexes' original plan – of being half-in, half-out working royals – was never going to work. Obviously, as the Queen has made clear, they are still much-loved members of her family. 

 "But if they aren't carrying out official duties and are now seeking other commercial opportunities, they simply cannot be allowed to market themselves as royals."

The couple are reported to have "no regrets" about their decision to step down.