Prince Harry is said to be keen on taking the next step with American actress Meghan Markle by setting up home with her in Kensington Palace.

After months of dating, with the pair jetting back and forth between the UK and Markle's native Canada, it is rumoured that Harry is eager to settle down with Meghan at his London home.

Mail Online reports that the 32-year-old prince is moving into a new apartment in Kensington Palace, where he plans to set up home with the 35-year-old Suits star.

According to a source, the royal has been hurrying along the renovations to the residence and is eager to move out of his two-bedroom bachelor pad at the palace, where Meghan has been a frequent guest.

"He keeps popping round and asking when it will be ready. He seems in a real hurry to move in with Meghan," the source claimed.

The new apartment is reportedly closer to the newly renovated wing which the Duke and Duchess of Cambridge will move into in September as Prince George begins his first term at the £17,000-a-year Thomas's school in Battersea, South London.

"It's sweet that Harry and Meghan will be living next to William and Kate," the source added.

Harry has previously been romantically linked to aspiring actress Cressida Bonas and was in a long-term relationship with law graduate Chelsy Davy, but never spoke publicly about his alleged girlfriends.

However, he took the unprecedented stand of releasing a statement to confirm his relationship with Markle after the actress was subjected to intense scrutiny by the media.

Meghan Markle and Prince Harry in Jamaica
Meghan Markle and Prince Harry are rumoured to be setting up home together in London Instagram/Getty

Most recently, Meghan was introduced to Harry's inner circle as she accompanied him to Jamaica for the wedding of his friend Tom Inskip.

Meanwhile, tennis star Serena Williams, who has been friends with the Suits actress since 2014, has invited the couple to her eagerly anticipated nuptials with Reddit co-founder Alexis Ohanian later this year.

In another sign that the royal romance is getting serious, it was recently reported that Meghan is planning to give up acting to focus on her philanthropy.

As Harry and Meghan's worlds are increasingly conjoined, the news of their rumoured London love -nest will no doubt fuel speculation that the pair are due to announce their engagement this summer, with royal-watchers anticipating that they will tie the knot by the end of the year.