Princess Eugenie will be Kate Middleton and Prince William’s neighbor as the 26-year-old is planning to rent a three-bedroom cottage in Kensington Palace grounds early next year, the Daily Mail reported. Princess Eugenie is planning to leave the four-bedroom apartment in St James’s Palace, which she shares with her sister, Princess Beatrice, according to reports.

The news comes just a day after rumors surfaced that the youngest daughter of Prince Andrew and Sarah Ferguson is set to marry her longtime boyfriend of six years, James Brooksbank, next year.

However, the Duchess of York denied the rumors surrounding her daughter’s marriage. A spokesman for the York’s reportedly said that the report about Princess Eugenie and Brooksbank’s wedding is “categorically not true.”

Princess Eugenie and her 29-year-old boyfriend met each other at the Swiss ski resort of Verbier in 2010, following which the two started dating.

Meanwhile, Princess Eugenie's older sister Princess Beatrice recently split with her long-term boyfriend Dave Clark after 10 years. According to reports, the reason for the split was that Princess Beatrice was disappointed after her 32-year-old boyfriend did not propose her for marriage.

"After ten years together, Beatrice and Dave had to wonder why they were not married," a source told Mirror Online. "They talked it through and decided to take time apart to reflect on the future. They remain friends and the decision to break up was mutual."

While reports surface about Princess Eugenie’s move to Kensington Palace, which is also home to Prince Harry, there has not been any official announcement so far.