The Queen’s grandson Peter Phillips is reportedly separating from his wife of 12 years, Autumn Phillips.

Princess Anne’s son married the Canadian-born Autumn in 2008 and are parents to nine-year-old Savannah and seven-year-old Isla.

The news has reportedly come as a shock to both Peter and the Queen.

One pal revealed to The Sun: “Peter is absolutely devastated by this and just didn’t see it coming.

“He thought he was happily married and had the perfect family with two lovely daughters. But he is now in total shock.

“Autumn is a wonderful wife and mother and a very intelligent woman, but she’s been telling her friends for some time that there were issues.

“She is a favourite of the Queen and I’m sure Her Majesty will be very upset by this as well.

“It’s the last thing she needs after all her recent troubles and you get the feeling that the Royal Family is falling apart a little bit.”

The split comes just two weeks after Peter sparked controversy after starring in a Chinese milk advertising campaign while being promoted as a “British royal”.

Those close to the couple are worried that Autumn might want to head back to her homeland Canada after the split.

“What worries some of us is that Autumn may want to go back to Canada,” one friend said.

“Maybe she has been influenced by Harry and Meghan’s departure. Perhaps she thought if that can happen then I can leave as well? That might be unfair on her but you have to consider it."

A senior royal insider said that the Queen must be “crestfallen” by the news.

“The Queen must wonder what she has done to deserve this.

“Peter Phillips has always been a favourite of hers and Prince Philip and she will be crestfallen by this, especially on top of all the other bad news.

“It makes you wonder what’s going to happen next.”