'They didn't leave on good terms by any means, but they are both relieved that it's over, ' the source - described as a friend of the family - said.
It wasn't exactly clear how things would shake out when Prince Harry and Meghan announced their plan to "step back", but once Queen Elizabeth met with Prince Harry, Prince William, and Prince Harry to discuss the matter, they were able to finalize an agreement.
In the clip, she attempts to persuade British aristocrats Harry and Meghan to move to the United States rather than Canada.
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However, even if Harry and Meghan do bite on Madonna's proposal, it's understood the regulations at her building are strict when it comes to sublets.
There's no word yet if baby Archie went with them or not, but we're sure someone would have leaked adorable photos of him by now if he had.
Last month, photographs showed the Duchess carrying her son as she walked through a park near the enormous mansion while wrangling her black Labrador Oz and beagle Guy.
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They have been staying on Vancouver Island.
The Sussexes will not use their royal highness titles and would repay what they spent on the refurbishment of Frogmore Cottage, which will remain their United Kingdom family home.
"Don't run off to Canada, It's so boring there", she says before describing her apartment.
The couple - who have stepped back from royal duties and now live in Canada - said on Instagram they were "sending our very best" to their Kiwi followers.
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People also reports that they will likely be spending the summer in Los Angeles. They plan to split their time between the United Kingdom and North America as they work toward becoming financially independent.