The British royals - who tied the knot at Westminster Abbey on April 29 - will embark upon married life in a "modest apartment" in London's Kensington Palace, where William and his younger brother Prince Harry once lived with their late mother.
The Duke and Duchess of Cambridge will split their time between the capital and their cottage in Anglesey, North Wales, where the 28-year-old prince carries out his duties as an Raf search-and-rescue pilot.
An insider explained: "They are really looking forward to moving in soon and having a base in the capital. Kate and William love the peace and quiet of Anglesey but they can't just stay holed up there for the next two years.
"The public want to see them, and it makes sense for them to have a base in the capital. They both love London have lots of friends there and it's a good place for Kate to get stuck into thinking about what charities she wants to promote and other work she might take on."
Until now, the pair had been living in the bachelor pad William formerly shared with Harry, 26, at Clarence House.
It is believed Kensington Palace will be the couple's base for about a year until a more permanent residence is found.
The source added to the Daily Mirror newspaper: "After looking at a few apartments the couple decided this is the one they feel most comfortable in.
"Kate has enjoyed picking things out to decorate it and make it their home."