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The statement said: "Today my family had very constructive discussions on the future of my grandson and his family.
"My family and I are entirely supportive of Harry and Meghan's desire to create a new life as a young family. Although we would have preferred them to remain full-time working Members of the Royal Family, we respect and understand their wish to live a more independent life as a family while remaining a valued part of my family.
"Harry and Meghan have made clear that they do not want to be reliant on public funds in their new lives.
"It has therefore been agreed that there will be a period of transition in which the Sussexes will spend time in Canada and the UK.
"These are complex matters for my family to resolve, and there is some more work to be done, but I have asked for final decisions to be reached in the coming days."
The Duke of Sussex had wanted his 93-year-old grandmother, father and brother to let him and his wife keep their royal titles while living abroad and grabbing 'financial independence' to earn their own money using the Sussex brand, which experts say could be worth £400million.
Earlier today (NZT) Harry drove into Sandringham via its rear entrance in a blacked-out Range Rover Evoque at 11.20am - just as he and his older brother released their first joint statement since the abdication crisis blasting claims William has been bullying the Sussexes.
William arrived from nearby Anmer Hall at 1.45pm - 15 minutes before the 2pm meeting started - suggesting he chose to miss lunch with his brother and the Queen, who has been there since Christmas, as well as Charles, who arrived by helicopter yesterday.
Her Majesty has been supported by Prince Philip throughout the abdication crisis and her husband of 72 years has acted as her sounding board for finding a solution. The Duke of Edinburgh ducked out of the palace before the mega-summit started, leaving his wife to broker the deal, but is said to be furious with his grandson and his Californian-born wife.
The Times claimed today that Meghan told Harry she must step away from the royal family just 20 months after marrying into it, partly blaming his older brother's 'bullying attitude' and told her husband over Christmas: 'It's not working for me'.
But hitting back Harry and William said today it was a 'false story', adding: 'For brothers who care so deeply about the issues surrounding mental health, the use of inflammatory language in this way is offensive and potentially harmful'.
A grim-faced Prince Philip was seen at Sandringham this morning but will leave it to his wife, Prince Charles and Prince William to broker an exit deal with the Sussexes.
The Queen has been leaning heavily on her husband for support - and Philip, who has lived in a cottage of the Sandringham estate since retiring from public life in 2017, has been staying in the main house with the Queen since the crisis broke.
Philip was reportedly 'spitting blood' with anger when he found out last Wednesday and yelled at his aides: 'What the hell are they playing at?'
