Prince William and Kate Middleton currently live in Anmer Hall, in Norfolk, but the couple are said to have their sights on Adelaide Cottage in Windsor.
A royal insider has revealed the Duke and Duchess of Cambridge would like to move to the "grace and favour" property, which is 10 minutes from the Windsor Castle where the Queen now resides, after she recently left Buckingham Palace for good.
Adelaide Cottage is their first choice in royal residence because it has recently been refurbished, and is best suited for the family of five, which includes their three children Prince George, eight, Princess Charlotte, seven, and Prince Louis, four.
It is also top of their list because Prince William, 39, and Duchess of Cambridge, 40, want to send their brood to the same school in Windsor.
The family are reportedly keen to move sooner rather than later.
A source told The Sun Online: "Finding a way to make Adelaide Cottage work seems to be the best and only option.
"There are issues with all the other houses, so Adelaide will be the favourite."
Frogmore House, also in Windsor, is also said to be an option for the family, but they have opted against it because it would be too costly to renovate to serve as a family home, the insider has claimed.
Adelaide Cottage, which was built in 1831, is officially owned by Her Majesty, but serves as a guesthouse for friends of the royal family who visit.
Though the Cambridge's spend most of their time at Anmer Hall, they also split their time between Kensington Palace in West London.
options on the table, such as Frogmore House which Will and Kate recently visited, are thought to be too expensive to renovate and adapt to comfortably serve as a family home.
A royal insider told The Sun: 'Finding a way to make Adelaide Cottage work seems to be the best and only option.
'There are issues with all the other houses, so Adelaide will be the favourite.'
Built in 1831, the cottage is officially owned by the Queen but has long been used as a guesthouse for friends of the royal family.
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