William and Kate look set to get a new neighbour as Princess Eugenie is reportedly moving into Kensington Palace .

The 26-year-old royal is believed to be moving into a rented three-bedroom cottage in the Palace grounds early next year, the Daily Mail reported.

The youngest daughter of Prince Andrew and Sarah Ferguson currently shares a four-bedroom apartment in St James’s Palace with her sister, Princess Beatrice.

Kensington Palace, in West London, is already home to the Duke and Duchess of Cambridge and Prince Harry.

The news comes as rumours of a new Royal Wedding were quashed after it was claimed Eugenie is set to tie the knot.

Royal wedding bells were briefly heard when the Sunday Express reported that she was planning to get engaged to boyfriend of six years, James Brooksbank.

However, the Duchess of York was quick to deny the reports as a spokesman said: "It is categorically not true."

Eugenie was introduced to her 29-year-old nightclub boss beau at the Swiss ski resort of Verbier in 2010.

Princess Eugenie blasted by security experts for tipping off terrorists to her daily routine in Harpers Bazaar interview

Meanwhile, Eugenie's older sister Princess Beatrice recently split with her longterm boyfriend Dave Clark after 10 years.

The 27-year-old is believed to be disappointed that Dave, 32, did not pop the question after she joined him in America when he moved Stateside for a role at Uber.

Princess Beatrice and boyfriend Dave Clark ‘split’ after 10 years together

"After ten years together, Beatrice and Dave had to wonder why they were not married," a source said.

"They talked it through and decided to take time apart to reflect on the future. They remain friends and the decision to break up was mutual."

COURTESY: Mirror Co Uk