Prince Harry and Meghan Markle will have a church wedding at St George's Chapel in Windsor Castle next May, Kensington Palace announced on Tuesday.

The American actress, who is a Protestant Christian and went to a Catholic high school, will be baptised before the service, the palace added. She also intends to become a British citizen.

The Royal Family will pay for the wedding including the church service, the music, the flowers and the reception after the Queen gave permission for the chapel to be used.

The smaller and more intimate venue means the couple have chosen not to follow either Harry's father, Prince Charles, in getting married at St Paul's cathedral, or his brother, Prince William, in getting married in Westminster Abbey.

St George's was the venue where Prince Charles' marriage to Camilla was blessed by then Archbishop of Canterbury Rowan Williams following their civil ceremony in Windsor Guildhall.

Justin Welby, the current Archbishop of Canterbury, is expected to take the service as is tradition for royal weddings but neither Kensington Palace nor Lambeth Palace has confirmed any further details.

The chapel holds 800 people as opposed to the 2,000 capacity of Westminster Abbey and was predicted to be the couple's choice.

Harry's communication's secretary Jason Knauf said Windsor was a 'very special place' for Harry, and that he and Ms Markle had spent time there together during their 16-month romance, according to Press Association.

He said the couple were delighted to be holding the wedding in the 'beautiful grounds of Windsor'.

Speculation as to whether the couple would opt for a church wedding mounted as questions were raised about Ms Markle's status as a divorcee. However the Church of England allows people who have been divorced to remarry in church in 'exceptional circumstances' as long as the priest officiating is happy certain criteria has been met.

But the CofE's guidance for remarrying divorcees suggests the priest in charge holds at least two interviews with the couple to check they are suitable. According to the guidance Prince Harry and Ms Markle can expect some awkward questions such as 'what have you learned from your previous marriage?' and 'has there been healing of past hurts?'