Prince Harry told the Queen of his wish to name a daughter after her years before he met wife Meghan, it has been reported.
The Duke of Sussex informed his grandmother of his desire to use her name – or at least part of it – when discussing his future family life, sources told the Mirror.
Her Majesty is said to be "delighted" by his and Meghan's decision to call their newborn daughter Lilibet – who will be known as Lili.
The monarch was given the moniker after having trouble pronouncing Elizabeth as a child.
The nickname Lilibet was also one of the affectionate names the late Duke of Edinburgh used for his wife of 73 years – another one being Cabbage.
The Queen signed 'Lilibet' on the card she left on top of Prince Philip’s coffin before he was laid to rest in April.
Two-year-old son Archie's little sister was born on Friday June 4 at 11.40am at Santa Barbara Cottage Hospital in California.
Palace insiders hope the joyous news will “go a long way” to start to help heal the fractured relationship between the Duke and his family.
Harry and Meghan ask for women's charity donations instead of gifts for baby Lilibet
A royal source told the Mirror: “Harry has always enjoyed a wonderful bond with his grandmother, which makes it all the more bizarre that he has gone out of his way to threaten the relationship over the last couple of years.
“They have been incredibly close and as you would imagine have shared some very deep and personal conversations as Harry was growing up, which carried on really until very recently.
“Harry has never made a secret of his wish to have a family of his own, often talking about how it would be great to have a boy and a girl, that he could name after the two most important women in his life, the Queen and his mother.
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“In the end, he mentioned Lilibet to Meghan, when discussing potential names for their children and she loved the idea.
“It’s a fitting tribute to the Queen and something many people will hope brings the family closer together.”
Meghan and baby Lili Diana are understood to be “doing very well” as they settle into life as a family of four.
Little Lili has been given the middle name of Diana, in tribute to both her late grandmother and Harry’s beloved mum.
Sources have confirmed that Harry and Meghan did not seek formal permission from the Queen to use the nickname, but they did inform her in private prior to announcing her arrival to the world.
The news of Lili’s arrival has cleared the way for Harry to attend the July 1 unveiling of a new statue of his mother, Princess Diana at Kensington Palace.
The Duke of Sussex, 36, will accompany his brother Prince William, 38, as they stand shoulder to shoulder to unveil the exhibit they have been working on and designing since 2017.
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