Kate Middleton and Prince William have announced the name of their newborn daughter, ending huge speculation.

In a statement, Kensington Palace said: "The Duke and Duchess of Cambridge are delighted to announce that they have named their daughter Charlotte Elizabeth Diana.

"The baby will be known as Her Royal Highness Princess Charlotte of Cambridge."

The announcement comes after rife speculation about the name of the new princess, who was born on Saturday morning (May 2).

The bookies' favourites had been Alice and Charlotte, with thousands of punters placing cash on which would be chosen.

The name Charlotte is thought likely to be a tribute to William's father, the Prince of Wales, as it is the feminine form of the name Charles, the Mirror reports.

The princess' middle names clearly recognise her great grandmother the Queen - Elizabeth II - and grandmother Diana, Princess of Wales.

The baby is fourth in line to the throne, knocking uncle Prince Harry down to fifth place, and because of new laws she will keep her place in the line of succession even if she has a younger brother.

Like Prince Harry, she will grow up with the “spare” to the heir tag and be pushed down the line of succession when George grows up and has children.