Kate Middleton is pregnant and expecting a Royal baby!
An official statement from the Palace announced the news this afternoon.
It said: "The Duke and Duchess of Cambridge are very pleased to announce that the Duchess of Cambridge is expecting a baby."
A spokesperson added: "The Queen and Duke of Edinburgh, the Prince of Wales and members of both families are delighted with the news."
But St James's Palace said in a statement that Kate had been admitted to a private hospital for treatment for a severe form of morning sickness.
The statement continued: "The Duchess was admitted this afternoon to King Edward VII Hospital in central London with hyperemesis gravidarum.
"As the pregnancy is in its very early stages, Her Royal Highness is expected to stay in hospital for several days and will require a period of rest thereafter."
St James's Palace would not say when the royal couple became aware of the pregnancy only saying "recently".
It is understood that the pregnancy has not passed the 12 week point and today's announcement was prompted by the Duchess's medical condition.
Speculation has been rife for a while that Prince William and Kate Middleton were expecting a baby.
Body language expert Judi James told Entertainmentwise last week that Kate had been looking vulnerable and clutching handbags over her stomach to cover the area.
And Prince Williams was given a babygro on a recent trip to Cambridge and apparently blushed when he was handed the item.
The Duchess also stepped out last week with a new haircut - a 70s style do with a fringe - leading to lots of suggestions it was a diversion tactic.
Social networking site Twitter instantly went crazy at the news with #royalbaby, Will & Kate and The Duke & Duchess of Cambridge all trendign.
Either way we are SO excited for a Royal Baby.