Prince Harry and Meghan Markle Are 'Happy With Life' in Kensington Palace

Prince Harry and Meghan Markle may not be packing their bags out of Kensington Palace anytime soon after all.

Despite earlier reports that the Duke and Duchess of Sussex may be considering moving out of their two-bedroom cottage in the Palace, a source has clarified the pair is not going anywhere.

A Kensington Palace source told Harper's Bazaar that the couple is not planning on leaving Nottingham Cottage or planning to move into Apartment 1A. The couple is reportedly "happy with life" in Oxfordshire and use the cottage "as their London pied-à-terre."

The rumors of Harry and Markle possibly vacating their Palace abode came after a report from Daily Mail, who quoted a source claiming the couple was looking for a new residence as they prepare for the arrival of their first child in spring 2019.

The report also alleged that Queen Elizabeth's cousin, the Duke of Gloucester and his wife Birgitte were supposed to be moving from the 21-bedroom Apartment 1 home to make room for Harry and Markle. The outlet claimed that Birgitte was not happy to move from her home, which is reportedly located next to Prince William and Kate Middleton's lavish home.

"Birgitte doesn't want to leave," a source told the publication. "And why should she? She and her husband are still full-time working members of The Firm and they were given their apartment by Her Majesty."

"Harry and Meghan want to move, and need more space, but they don't want to live next door to William and Catherine," the source added.

The rumors seemed to be reinforced with previous reports that Prince Harry and Markle want to distance themselves from Prince William and Kate as their responsibilities start to drift away.

"There is a gulf in the style and approach to the type of work that William and Kate will increasingly do as future head of state and consort, and Harry and Meghan, who have more of a blank canvas with their roles," a source told press recently. "When William becomes the Prince of Wales, he will take on a lot of extra responsibility, including the Duke of Cornwall and all that entails. Harry and Meghan have none of that, and seem ambitious about forging their own paths."

The decision to distance themselves comes as Prince William reportedly moves toward other responsibilities as heir to the British throne. The couple will continue to work on the Royal Foundation, however, which organizes charitable endeavors and their mental health campaign.

"They have brought many charities working in the same sector together to empower them and lend their positions. But they will increasingly follow their own respective interests," royal author Sally Bedell Smith told PEOPLE. "I think it really is just a shift in priorities and interests. William is a husband and father of three and his focus is primarily on them, and Harry will soon be a father."

"Each of them will continue the very strong representative of the Queen in carrying out tasks and assignments that she, and probably their father, wants them to do," Smith added at the time. "They are going to be sharing in this diffusion of activities on behalf of the Queen."