Autumn Phillips and Peter Phillips have settled their divorce (Image: Getty Images Europe)

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The Queen's grandson Peter Phillips has settled his divorce with his estranged wife Autumn.

The couple announced last February they were divorcing after 12 years of marriage, with the monarch said to be upset at the news.

They were expected to hold a court showdown, but today a spokesman for the couple said they "resolved matters amicably".

Peter, Princess Anne's son, is the first of the Queen's grandchildren to legally divorce.

A spokesman for the couple said: "Mr Peter Phillips and Mrs Autumn Phillips are pleased to be able to report that the financial aspects of their divorce have been resolved through agreement, the terms of which have been approved and ordered by the High Court today.

The Queen was reportedly upset when the couple announced their divorce
(Image: Getty Images)

“Whilst this is a sad day for Peter and Autumn, they continue to put the wellbeing and upbringing of their wonderful daughters Savannah and Isla first and foremost.

“Both Peter and Autumn are pleased to have resolved matters amicably with the children firmly at the forefront of those thoughts and decisions.

“Peter & Autumn have requested privacy and consideration for their children as the family adapts to a new chapter in their lives."

The pair, who wed in 2008, have two children together – Savannah, nine, and seven-year-old Isla.

Peter and Autumn plan to stay in Gloucestershire where they will co-parent their children.