The highly anticipated statement from Buckingham Palace said: "The whole family is saddened to learn the full extent of how challenging the last few years have been for Harry and Meghan.
"The issues raised, particularly that of race, are concerning. Whilst some recollections may vary, they are taken very seriously and will be addressed by the family privately.
"Harry, Meghan and Archie will always be much loved family members."
Daily Express royal correspondent Richard Palmer has said behind the scenes many within the palace are furious Meghan accused the Royal Family of racism.
Queen statement: A royal expert points out there's a "killer line" within the statement (Image: Getty)