Harry and Meghan will make and star in Netflix TV shows and films
The deal comes just six months after the couple left their royal titles and duties in order to find financial independence and make a life away from the media spotlight.
The announcement also follows the recent publication of Finding Freedom, a book about the couple's experience of increasing tension in the Royal Family.
What kind of shows will they make?
While the couple have featured on television countless times, the deal will be their first experience in making television.
The deal will encompass not just the making of documentaries, but also feature films, scripted shows, docu-series and children's programming.
The couple explained that their own experiences in life have made them qualified for the task at hand, saying "our lives, both independent of each other, and as a couple have allowed us to understand the power of the human spirit: of courage, resilience, and the need for connection."
Netflix chief Ted Sarandos confirmed that the royal couple had made the company "their creative home" after signing the multi-year deal.
Sarandos added that Netflix hoped the couple "can help build resilience and increase understanding for audiences everywhere".
The couple explained their goal was to create "content that informs but also gives hope".
They added that "as new parents" they found the need for "inspirational family programming" and "powerful storytelling through a truthful and relatable lens" had became more important.
According to Deadline, they already have a couple of shows currently in development such as a "nature docu-series and an animated series that celebrates inspiring women".
Harry and Meghan dropped their Sussex Royal brand after stepping away from royal and public life back in April this year.
It is not yet known what the couple's new production company will be called.