Prince Edward has won the hand of his long-term girlfriend Sophie Rhys-Jones and will marry her later this year, Buckingham Palace announced today.

The Queen and Duke of Edinburgh and Mr and Mrs Rhys-Jones are said to be thrilled at the news.

No decision has yet been taken regarding a venue and date for the wedding, but the couple disclosed today they hoped to marry at St George's Chapel, Windsor, in the early summer.

Prince Edward and his bride-to-be made their first public appearance only an hour after the Palace put an end to frenzied speculation about the couple's wedding plans.

Together they strolled hand-in-hand toward the cameras, kissed and told the world of their joy at their impending marriage.

Looking relaxed and happy, 33-year-old Sophie showed off her Asprey Garrard diamond engagement ring at a photocall in the gardens of St James's Palace.

The couple said they wanted their wedding to be a family occasion.

Prince Edward, 34, proposed to Sophie just before Christmas but the couple agreed to keep it a secret until after Christmas so he could ask permission of Sophie's father.

Asked how he proposed, the Prince joked: "Well, I spoke it. I managed to take her completely by surprise. She had no idea that it was coming, which is completely what I wanted."

Sophie added: "I was slightly stunned for a minute, then I realised I should answer the question. I said 'yes, yes please'."

The couple said that as well as being very much in love, they were the best of friends and shared many interests.

"We are the best of friends and we happen to love each other very much," Edward said.

"We are very happy at the moment, and long may that continue."

The engagement announcement was described as "wonderful news" by Sir Marcus Worsley, the Lord Lieutenant of North Yorkshire and brother of the Duchess of Kent.

Sir Marcus, who acts as the Queen's representative in North Yorkshire, added: "I'm absolutely delighted. I have had the privilege of meeting them both, I think they are both splendid people and I have every hope of a happy life between them."

Sir Marcus wished them well for the future and said he thought the couple would be "very well equipped" to cope with the pressures of married life.

The Lord Mayor of York, Coun Derek Smallwood, said he was absolutely delighted by the news of the engagement and wished the couple well on behalf of local citizens.

"I'm sure every one of them would hope I would wish them a successful, pleasant, long and happy marriage," he said.

He praised them for taking a relatively low-key approach to their role and keeping their relationship out of the limelight, which he felt would help lead to a more successful marriage than those of the Prince's elder brothers.

Coun Smallwood said he was sure leading "as ordinary a life as possible" would reduce the intensity of the pressure on their relationship, but would not prevent them participating in Royal engagements if they wished.

The Dean of York, the Very Reverend Raymond Furnell, was delighted by the announcement, saying: "What splendid news. One can only hope they will be exceedingly happy and live a long life."

The couple's engagement announcement came in a statement from Buckingham Palace which read: "The Queen and the Duke of Edinburgh are delighted to announce the engagement of their youngest son, Prince Edward, to Miss Sophie Rhys-Jones.

"The couple sought the permission of their respective parents between Christmas and the New Near. Both families are thrilled at the news."

The couple said they wanted it to be known they intended to continue life and business as usual before and after the wedding, and after their marriage they will live at Bagshot Park, Surrey, on which Edward took a lease in 1997.

No decisions have yet been taken on the best man, bridesmaids, wedding dress or honeymoon.

Sophie, 33, a public relations executive, will continue her work at R J H Public Relations.

Her parents, Christopher and Mary, who live in the Kent village of Brenchley, near Tunbridge Wells, where she was brought up, said today the Prince and their daughter would make a "wonderful couple".

"We are both extremely pleased and very happy for Sophie and Prince Edward. We have always enjoyed Prince Edward's company and feel that they make a wonderful couple.

"On behalf of our whole family, we wish them every happiness for the future."

The Prime Minister was told of the engagement before leaving the Seychelles for an official visit to South Africa early today.

A spokesman said: "He and Cherie are absolutely delighted."

The prince and Miss Rhys-Jones were present when the Prime Minister and Mrs Blair spent their traditional weekend with the Queen at Balmoral last year.

The prince, who has launched himself into the role of television documentary presenter and producer, is joint managing director of Adrent Productions.

Malcolm Cockren, chairman of Ardent Productions, today wished the couple every happiness.

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