The palace said Harry's appointment as captain general of the Royal Marines and titles with other military groups would revert to the queen before being distributed to other members of the family.
Harry served in the British army for a decade, including on the front line in Afghanistan and retains a close bond with the military. He founded the Invictus Games competition for wounded troops, which first was held in 2014 at London's Queen Elizabeth Olympic Park.
He will also have to relinquish positions as patron of the Rugby Football Union, the Rugby Football League and the London Marathon Charitable Trust.
Meghan, 39, will be stripped of her role as patron of Britain's National Theatre and the Association of Commonwealth Universities.
"While all are saddened by their decision, the duke and duchess remain much loved members of the family," the palace statement said.
American actress Meghan Markle, a former star of the TV legal drama Suits, married the queen's grandson Harry at Windsor Castle in May 2018. Their son, Archie, was born a year later.
In early 2020, Meghan and Harry announced they were quitting royal duties and moving to North America, citing what they said were the unbearable intrusions and racist attitudes of the British media toward the duchess.
The couple agreed to no longer use the title "royal highness" or receive public funds for their work, although it was unclear at the time if those decisions would stand.
They retain their titles of duke and duchess, and Harry is still sixth in line to the British throne. Harry and Meghan now live in Santa Barbara, California, and are expecting their second child. The couple recently announced they would speak to Oprah Winfrey for a TV special to be broadcast next month.
They continue to have a tense relationship with sections of the British media. Earlier this month, Meghan won a legal victory in a lawsuit against the publisher of the Mail on Sunday, when a British judge ruled the newspaper invaded her privacy by publishing part of a letter she wrote to her estranged father.
News of their break with the palace comes as Harry's grandfather, 99-year-old Prince Philip, is in a London hospital, where he was admitted on Tuesday after feeling unwell.
A spokesperson for the couple hit back at suggestions that Meghan and Harry were not devoted to duty.
"As evidenced by their work over the past year, the Duke and Duchess of Sussex remain committed to their duty and service to the UK and around the world, and have offered their continued support to the organisations they have represented regardless of official role," the spokesperson said in a statement.
"We can all live a life of service. Service is universal."
- AP
