Princess Eugenie is reportedly ‘thrilled’ after it was revealed earlier this month that Prince Harry and Meghan Markle had bought a holiday home in the same luxury complex as them in Portugal.

Princess Eugenie is ‘thrilled’ by Prince Harry and Meghan Markle’s latest move according to an insider.

Earlier this month it was revealed that the Sussexes had splashed out millions of pounds on a new holiday home in a luxury development of 300 properties in the picturesque Melides area on the coast of Portugal – the same complex as Harry’s cousin, Eugenie.

The cousins and their families are reportedly set to make the most of their time living side by side in the coveted CostaTerra Golf and Ocean Club development.

After Harry and Meghan quit as working members of the Royal Family, it has been reported that they have maintained a close friendship with Eugenie and her husband Jack Brooksbank.

A source told Bella magazine that Harry potentially sees it as the only chance for his kids Lilibet and Archie to make friends with other royal children: ‘Harry must know his children are not going to grow up as friends of William’s children, George, Charlotte and Louis.”

Having lived in Monecito, US since leaving the UK, the Sussexes bought their new holiday home from the same company that Eugenie’s husband works for.

The royal source believes that the friendship that Archie and Lilibet form with their new neighbours could be a way of maintaining ties with the Royal Family.

Harry has reportedly always kept a good relationship with Eugenie (Image: Getty Images)

They said: “A bond for Lilibet and Archie with Eugenie’s kids will be the only royal friendship they will have. So time in Portugal – even just for holidays – means that Harry is keeping the only door to the royal family just a little bit open for himself and for the next generation, and raising them as royal children, at least in some way?”

Another source added: “Eugenie is immensely fond of Harry and Meghan, as is Jack. They’ve always been incredibly close and it’s extremely heartening to them that a wider (peace for the Sussexes) with the royals is finally in sight.”

A spokesperson for Eugenie has been contacted for comment.