Los Angeles - Britain's Duke and Duchess of Cambridge will make Kensington Palace their home from 2013.
The royal couple - who currently live in the north of Wales where Prince William works as a helicopter rescue pilot - will be moving into apartment 1A in the London palace, formerly the home of Queen Elizabeth's sister Princess Margaret until her death in 2002.
An extensive refit is to be carried out on the house - which features a walled garden, a drawing room, staff quarters and a nursery - prior to them moving in, and Kate Middleton is said to be delighted with the move as it's close to central London.
A source told The Mail on Sunday: "William and Kate visited apartment 1A and loved it. Kate particularly adored the private walled garden because she loves gardening, and she thought the house has so much potential. She also likes the fact it was so close to Kensington High Street.
"They had seen a state apartment at St James' Palace, which they also rather liked, but they both agreed they wanted to live at Kensington Palace."
A Palace spokesperson added a lot of work was needed to turn it into a modern, habitable space.
The representative said: "The extent of the work needed to turn the apartment back into a home is not yet known, but it is expected that it will not be ready for occupation until at least 2013."
William initially wanted to move back into apartment 8, where he was brought up by his mother Princess Diana until her death in 1998, but the couple eventually decided against it.
In addition to living there, their offices will also be moved to Kensington Palace from their current home at St James' Palace.