Royal baby's title: Prince or Princess of Cambridge

The Royal baby, Prince William and Kate Middleton's newborn, will become the first ever Prince or Princess of Cambridge, Buckingham Palace has said.

The baby, who will be Britain's future monarch, will be given the official title 'His or Her Royal Highness the Prince or Princess of Cambridge'.

The Mayor of Cambridge, Councillor Paul Saunders, said the announcement was good news for the city.

"It is a great honour and I'm sure the people of Cambridge will appreciate it greatly," Saunders was quoted by The Telegraph as saying.

A royal fan poses with a cake outside The Lindo Wing of Saint Mary's Hospital in Paddington, west London on Monday. Prince William's wife Kate, (Catherine, Duchess of Cambridge) was admitted to hospital today in the early stages of labour as the world awaited the birth of a baby directly in line to inherit the British throne. Pic/AFP

"I think it's lovely to continue the close link with the Royal family. I think anything which helps to keep Cambridge in the public eye is a good thing as we rely on tourism," he said.

The baby will be born at St Mary's Hospital in Paddington, London, where Prince William was born in 1982.

Kate, who was accompanied by her husband, has been admitted to the private Lindo Wing at St Mary's hospital in central London in preparation for the birth of their first child. The Lindo Wing is where the late Princess Diana gave birth to William, 31, and to his younger brother Harry, 28. The baby will be third in line to the throne after Prince Charles and Prince William.