Prince William And Kate Set Up...Palace

Britain's Prince William's girlfriend Kate Middleton has moved in with him.

The 25-year-old beauty has been staying with the prince at his official London resident Clarence House for the past two months, with royal staff instructed to allow her constant access.

A source told Britain's The Sun newspaper, "Kate has been living in Clarence House with William for the past two months. She's so firmly installed there that she has given the keys for her place in Chelsea to her younger sister Pippa.

"The arrangements are unofficial, but she fast becoming part of the furniture there. She and William have had a roller-coaster year after splitting in April but it is fair to say they are closer than ever now."

"William has a room in the officer's mess at Combermere Barracks in Windsor, but the only time he has been staying there is when he has to be up at the crack of dawn. The rest of the time he has stayed in London - almost always accompanied by Kate."

News that the pair are living together will fuel rumors William and Kate are on the verge of cementing their relationship by getting engaged.

Yesterday the young couple enjoyed a pheasant shoot in Windsor Great Park.

The day out was William's Christmas gift from his grandmother Queen Elizabeth, and he reportedly had a successful day of shooting.

Both William and Kate dressed in traditional green tweeds, and appeared to be having a great time as they were seen frequently seen hugging and kissing each other.