Prince William, 31, is weighing up a plan to move from his current role as an RAF search and rescue helicopter pilot to the role of adjutant with the Blues and Royals, part of the Household Cavalry.
His decision to remain in the armed forces is understood to reflect the desire of William and his wife Kate to raise their child away from the spotlight of full-time royal duties, a report in the Sunday Times said.
"A plan has been devised for him to return to his old regiment. He would retain his rank as captain and assume the role of adjutant, which would provide the grounding for possible promotion to major and command of a cavalry squadron," the report said.
As adjutant, much of his time would be divided between the Household Cavalry barracks at Windsor and Knightsbridge, in London.
Both the places would be convenient for William when he along with wife Kate move to Kensington Palace in west London with their new-born baby later this year.