Harry and Meghan's daughter's place in the royal line of succession

The birth of Harry and Meghan's daughter Lili has altered the line of succession to the British throne, with senior royals moving one step further away from the top job.

The Duke and Duchess of Sussex welcomed their second child Lilibet Diana at 11.40am (4.40am on Saturday AEST) at Santa Barbara Cottage Hospital California, weighing in at 7lbs, 11oz (3.5kg), little sister to Archie, two.

With Prince Harry sixth in the succession order, behind Prince Charles, Prince William and the children of the Duke and Duchess of Cambridge - Prince George, seven, Princess Charlotte, six and Prince Louis - and Archie in seventh place, Lili is now eighth in the line of succession.

Her arrival moves Prince Andrew, the Queen and Prince Philip's second-eldest son, down to ninth spot, followed by his two daughters Princess Beatrice and Princess Eugenie and Eugenie's son August Brooksbank.

Beatrice will welcome her first child later this year.

Princess Anne, the Princess Royal, doesn't have her rightful place in the line of succession as she was moved down the list upon the births of her younger brothers. This rule was changed in time for the birth of Princess Charlotte.

Harry, 36, and Meghan Markle, 39, welcomed Lili at Santa Barbara Cottage Hospital, close to their US home.

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Their personal message read: "On June 4th, we were blessed with the arrival of our daughter, Lili. She is more than we could have ever imagined, and we remain grateful for the love and prayers we've felt from across the globe. Thank you for your continued kindness and support during this very special time for our family."

The Duke and Duchess of Sussex resigned as senior members of the British royal family in January 2020, relocated to the US where they are operating independently of the monarchy under the name Archewell.

Harry indicated to Oprah Winfrey during a tell-all interview in March 2021 that Lili would complete their family, with the couple having no plans for further children.

"To have a boy then a girl — what more can you ask for?" Harry said at the time.

The baby has been named after her great-grandmother Queen Elizabeth whose nickname is 'Lilibet', her second name in honour of her late-grandmother Princess Diana who would have turned 60 on July 1 this year had she lived.

Harry is expected to return to the UK for the unveiling of a statue of his mother commissioned by he and Prince William. It isn't known if Meghan and their children will join him for the trip.

Meghan and Archie remained at home in the US while Harry travelled back to the UK for the funeral of Prince Philip following his death on April 9 aged 99.