Queen Elizabeth II will host a showdown meeting with Prince Harry on Monday in a bid to solve the crisis triggered by his bombshell announcement that he and wife Meghan were stepping back from the royal frontline.

Other senior royals including Harry's father Prince Charles and brother Prince William are reported to join the monarch at her private Sandringham estate in eastern England.

Meghan will join the meeting via conference call from Canada as they attempt to work out the "next steps" towards a compromise and nip the growing crisis in the bud.

It's reported that the issues up for debate include how much money the couple will still receive from Charles's estate, their HRH titles and what commercial deals they can strike.

Harry, Meghan and son Archie spent Christmas in Canada, with the American former actress returning there this week.

The Queen on Thursday demanded that staff work with the couple to urgently find a "workable solution" that would take into account their demands for more freedom.

Senior royals were caught off guard by Wednesday's announcement that the Duke and Duchess of Sussex wanted to seek a "progressive new role" and divide their time between Britain and North America.

The Queen's office issued a terse statement the same evening, saying there were "complicated issues that will take time to work through".

Harry and Meghan said they intended to continue to "fully support" the queen and "collaborate" with senior royals.

They also want to keep their home on the queen's Windsor Castle estate as their British base, while aiming to become financially independent.

But their desire to live as both members of the monarchy and private individuals making a living was described as a "toxic mix" by David McClure, an investigator into royal finances.

"The history of senior royals making money - the two is a toxic mix. It hasn't worked well in the past," he told the Press Association.