Pregnant Kate Middleton and Prince William's royal baby, who is due to be born in mid-July, will hold the official title of His or Her Royal Highness Prince or Princess of Cambridge.
Buckingham Palace made the announcement as the nation awaits the royal baby's arrival, which is expected over the next few days.
William and Kate's first-born's title will follow their parents, who are known as the Duke and Duchess of Cambridge, respectively.
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The eponymous city of Cambridge greeted the news with particular enthusiasm, with the mayor of Cambridge calling it "a great honour".
"I think it's lovely to continue the close link with the royal family," said mayor Paul Saunders. "It is a great honour and I'm sure the people of Cambridge will appreciate it greatly."
As for the royal baby's actual name, Kate and William are said to have drawn up a shortlist but are waiting until he or she is born before making a final decision.
Even when the royal baby does arrive it may be a while before the name is revealed to the public. Prince William's parents Prince Charles and Diana, Princess of Wales, waited a week before revealing the name of their first-born son.
Possible names for William and Kate's first-born, if a girl, include Alexandra, Charlotte, Elizabeth and Victoria, with the latter two being touted as real possibilities by royal commentator Alastair Bruce.
The royal baby, who is third in line to the throne, however could change their name when they take the throne, said Alastair, just as the Queen's father, Prince Albert did. He later became known as King George VI during his reign.
If Kate gives birth to a boy, popular names that could be chosen include George, Edward, Charles and James, due to their historical connection to the royal family.