Prince Harry and Meghan Markle were interested in buying Mel Gibson's £12million mansion overlooking the Pacific Ocean in Malibu but ended up rejecting the option.

According to a report in The Sun, Prince Harry and Meghan Markle held talks over buying the "Lethal Weapon" star's £12 million mansion but never finalised the deal.

The five-bedroom mansion which is just 30 miles from Los Angeles comes with five acres of grounds and a private beach club membership. The mansion overlooks the Pacific Ocean in front of it and a green canyon behind it. The 6,758 sq ft home in Carbon Mesa also boasts two ocean-view swimming pools, walk-in closets, a chef's kitchen, as well as a gym. Brokers for the royal couple were reportedly in contact with brokers of the Malibu home, but they ended up walking away from the deal.

"There were conversations between brokers for Mel and brokers for Meghan and Harry. The talks were preliminary and they never got close to finalising a deal," a Hollywood source told the outlet.

"I'm not sure who ended the talks - Mel's house has been on and off the market for some time," the source added.

Meghan and Harry along with son Archie relocated to California from their £11million rented mansion on remote Vancouver Island, in Canada, just days after finishing their final engagements as working members of the British royal family in the United Kingdom. The couple who had announced at the time of their exit from the royal family that they would split their time in the UK and America were in talks for buying the 64-year-old actor's mansion for a long time.

According to The Sun, Andrea Pilot, who works for real estate firm Compass in LA, took to Instagram last week and claimed that the couple has bought the house but took down the post when contacted by the outlet.

Prince Harry and wife Meghan, Duchess of Sussex
Prince Harry and wife Meghan, Duchess of Sussex, have returned to Canada after completing final royal engagements in the United Kingdom. SIMON DAWSON/POOL

Buying a house in Malibu also holds sentimental value for the British prince. According to Dailystar, this is where Harry's late mother Princess Diana was planning to settle with Dodi Fayed after getting married.