The Royal Family will pay for the wedding, including the service, music, flowers and the reception.
Ms Markle, 36, a protestant, will be baptised and confirmed before the wedding, the palace added.
The 36-year-old US actress also intends to become a British citizen and will work towards it in the coming years.
Prince Harry's communications secretary Jason Knauf described Windsor as a "very special place" for the couple, saying they had spent time there together since meeting in July 2016.
He said they would carry out their first official engagement together in Nottingham on Friday.
St George's Chapel was the venue for the wedding of Prince Harry's cousin, Peter Phillips, and Autumn Kelly in 2008, and the Count and Countess of Wessex in 1999.
It was also the venue for a service of prayer and dedication after the Prince of Wales married the Duchess of Cornwall at the Windsor Guildhall in 2005.
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