A New Princess in the Palace! Eugenie Set to Become Kate and William's Neighbor

The royal is poised to move into a cottage nearby to Prince Harry's

Photo: Chris Jackson/Getty

Welcome to the palace, Eugenie! Prince William, Princess Kate and Prince Harry are likely to have their cousin for a neighbor.

PEOPLE confirms that plans are underway for Princess Eugenie, 26, to move into a cottage in the Kensington Palace compound that houses William and Kate, their children Prince George and Princess Charlotte, along with Harry.

Under the plan, Harry – whom Eugenie introduced to his last serious girlfriend Cressida Bonas – would live just yards away from his first cousin. He is in the two-bedroom Nottingham Cottage, while nearby the three-bedroom Ivy Cottage is being earmarked for her, says a source.

The “rent” for apartments in Kensington Palace is private, but a comparable apartment in London might run as high as $4,500 per week. The palace does not disclose who pays the rent.

Eugenie currently lives in an apartment at St. James’s Palace that she shares with her older sister, Princess Beatrice, 28.

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A Buckingham Palace spokesman declined to comment on the potential move. But a friend tells PEOPLE that it is “under discussion.” There are still some things to iron out and nothing has been agreed yet, says the friend.

If she does relocate, it would continue a trend among the younger royals living relatively close together.

6 Things to Know About Princess Eugenie’s Beau, Jack Brooksbank

Eugenie, who last week gave an insight into her royal and non-royal life, has been dating boyfriend Jack Brooksbank for several years now and there has been speculation that they are set to wed.

A spokesman for her mother, Sarah Ferguson, the Duchess of York, tells PEOPLE, “They are not engaged and there are no plans to get engaged. But they are very much a couple.”

That comes a week after it emerged that Beatrice had

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