The British royal family is discussing with Prince Harry and his wife Meghan the use of the word "royal" in their branding after they abruptly decided to start a new life in Canada.

The couple agreed last month with Harry's grandmother, Queen Elizabeth, that they would no longer work as royals after their surprise announcement that they wanted to carve out "a progressive new role" that they hope to finance themselves.

"As the Duke and Duchess of Sussex are stepping back as senior members of the royal family and will work towards financial independence, use of the word 'royal' in this context needed to be reviewed," a royal source said.