The Duke and Duchess of Cambridge and Prince Harry are set to establish their own powerbase at Kensington Palace.
William, Kate and Harry have until now shared an office with Prince Charles at St James's Palace. The new court will be ready in time for Harry's return from Afghanistan in January.
More than a dozen employees will begin the switch to the Royal residence in West London next month.
Kate and William, both 30, have a cottage on the site but will soon set up their home in Apartment 1A, which was previously occupied by Princess Margaret.
The move is seen as another sign that William is preparing to leave his role as a search-and-rescue pilot at RAF Anglesey to begin a life of Royal duty with his wife.
"The new set-up will be known as the Household Office of The Duke and Duchess of Cambridge and Prince Harry, and will be transferred from St James's Palace in stages," the Daily Mail quoted an aide as saying.
"Charles has agreed to fund the private office out of his existing income from the Duchy of Cornwall and has even offered to foot the bill for Kate's not inconsiderable working wardrobe," the aide said.
Another source said, "The irony is Kensington Palace is where Diana fashioned her powerbase after her divorce from Charles."
"There is no rift with Charles, just a recognition the time has come for the boys and Kate to create their own full identity," the source revealed.
By next spring, each of the three young Royals will have a private secretary.
Vicar's daughter Rebecca Deacon will act for Kate and former Ministry of Defence press secretary Miguel Head will support William, while Harry's aide is not yet appointed.
Helen Asprey will serve as personal private secretary and confidante to all three Royals. The aides will be overseen by long-time Royal gatekeeper Jamie Lowther-Pinkerton, who will be acting as principal private secretary and equerry.
The Kensington Palace retinue will include representatives of the trio's charity foundation, security staff and press secretaries.
The office will also house administration staff who will manage the rising number of public engagements undertaken by the three Royals. (ANI)