Prince Harry is spotted holding hands with his girlfriend Meghan Markle as friends of the couple say she has 'virtually moved in'

Hand in hand, Prince Harry and his actress girlfriend Meghan Markle walk through the streets of London as rumours of an impending engagement continue to grow.

The prince was pictured with the American-born divorcee, who has been spending a lot of time with him at Kensington Palace since the beginning of the year, after a romantic dinner at trendy private members' club Soho House on Wednesday.

Harry, 32, was said by onlookers to be relaxed about being photographed with his new love, which is being seen by royal watchers as a sign of how seriously he is taking the relationship.

Another indication is that Miss Markle, 35, who is based in Canada where she films the hit television show Suits, has found a sitter for her dogs, Guy and Bogart, who live with her in Toronto.

According to sources, she wants to spend as much time as she can in London with the Queen's grandson before she has to return for filming commitments in March.

Once a prolific social media user, Miss Markle has become much more circumspect about the information she puts out, not least because Harry is wary of such public forums.

She failed to highlight a charity trip to India last month – although some handpicked media were in attendance, it is believed – and has not posted any photographs on Instagram since December 11.

One source told the Mail that she may well move to London permanently by the end of the year, once her filming commitments have finished, and the creators of the legal drama she stars in are already looking at ways to write her out. They say Harry has fallen 'heads over heels' for the actress and is desperately keen for the relationship to work.