Caption: After days of speculation, the baby's name was announced by Kensington Palace this afternoon as Charlotte Elizabeth Diana (pictured centre).
She will be known as Princess Charlotte of Cambridge. A princess called Charlotte - a name that is French in origin - is a nod to her grandfather, the Prince of Wales, while Elizabeth and Diana are an obvious mark of respect to William's 89-year-old grandmother and his late mother respectively.
In royal history, George IV named his only child Charlotte, but she died in childbirth at 21. George III's wife was Queen Charlotte, who was born 1744.
William has previously spoken of his deep respect for his father and the amount of time the prince commits to his charitable work.
The Duke also places great importance on honouring her memory, having already used Diana's sapphire and diamond engagement ring when he proposed to Kate. Royal aides told MailOnline that the baby's second names were self-evident and would 'speak for themselves'.
Another royal source said they understood the couple simply liked the name - but admitted it was a 'happy coincidence' that both William's father and mother would live on in their grand-daughter.
Meanwhile, bookmakers are having to pay out millions after Charlotte, the bookmakers' second favourite, had its odds slashed from 3/1.
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