The Royal couple confirmed more details of their big day after announcing their engagement on Monday, following weeks of speculation.
St George's Chapel holds between 800 and 1000 people - large enough for a major wedding, but less formal that Westminster Abby where Harry's brother Prince William Wednesday Kate Middleton. or St Paul's Cathedral, where Harry's parents Prince Charles and Diana Spencer were married.
The exact date has not yet been revealed.
"Her Majesty The Queen has granted permission for the wedding to take place at the Chapel", the statement continued.
Kensington Palace has said the Royal family will pay for the wedding, which will include the church service, the music, the flowers and the reception.
He said the couple were delighted to be holding the wedding in the "beautiful grounds of Windsor". "They also want the day to be shaped so as to allow members of the public to feel part of the celebrations too and are now working through ideas for how this might be achieved".
"Prince Harry and Ms Markle are leading the planning process for all aspects of the wedding".
A spokesman said the 36-year-old Suits actress would retain U.S. citizenship through the process of becoming a United Kingdom citizen but it was "too early to say" if she would retain dual nationality. The couple will undertake their first joint engagement on Friday with a visit to Nottingham.
They noted: "As with all members of the royal family, Windsor is a very special place for Prince Harry and he and Ms Markle have regularly spent time there over the a year ago and a half".
At the arts centre, they will join celebrations for World AIDS day hosted by the Terrence Higgins Trust.
The firer of cupid's arrow has not been formally named but the Daily Telegraph understands she is Violet von Westenholz: one of Prince Harry's oldest family friends.