Prince William and Kate are getting a new royal neighbour

Princess Eugenie is moving on up next year to a residence in Kensington Palace, a York family friend has told Hello!. In a move that will see her living alongside neighbours Prince William and Kate in Apartment 1A and Prince Harry in Nottingham Cottage, the 26-year-old will settle into the three-bedroom Ivy Cottage on the palace grounds.

The source said that the move has not been finalised and discussions are still ongoing, but "it is likely that she will take over the property in the next few months".

Eugenie's boyfriend Jack Brooksbank, 29, is unlikely to officially move in with her.

TAP TO VIEW GALLERYJack Brooksbank and Princess Eugenie holding hands Princess Eugenie's boyfriend Jack Brooksbank will not be moving in with her

The source added: "What can be said with all certainty is that Jack will not be moving in with her and nor are they planning to get married. He is a lovely young man and there is little doubt that they will settle down together some day.

"But Eugenie is only 26 and although Jack is three years older he isn't at a stage yet where he is able to support her. He will do, one day, just not now."

It comes after a report claimed that Eugenie and Jack were planning to get engaged by the end of the year, and marry in 2017.

Kensington The 26-year-old will settle into the three-bedroom Ivy Cottage

However a spokesperson for Eugenie's mum, Sarah Ferguson, categorically denied it saying: "The story is not true." The family are currently holidaying in Balmoral, the Queen's estate in Scotland, and are said to be "utterly bemused" by the engagement suggestion.

Eugenie and Jack, who is the manager of celebrity hotspot club Mahiki in Mayfair, have been together for six years after being introduced by friends during a ski break in Switzerland.

Jack is very close to Eugenie's parents and is often pictured in their company. Last year, they attended the Ascot races together.

The Cambridges with Prince Harry She will count Prince William, Kate and Prince Harry as her neighbours

Eugenie, who is an associate director at art gallery Hauser & Wirth, currently lives with her older sister Princess Beatrice in a four-bedroom apartment in St James's Palace. Beatrice first moved into the apartment when she was a student at Goldsmiths College in London.

Buckingham Palace has declined to comment on the move.

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