The 27-year-old younger daughter of Prince Andrew, Duke of York, the monarch's younger son and Sarah, Duchess of York, will marry her nightclub manager boyfriend later this year at St George's Chapel in Windsor Castle, the same venue as Prince Harry and Meghan Markle's wedding on May 19.
"The Duke and Duchess of York are delighted to announce the engagement of Princess Eugenie to Mr Jack Brooksbank. Her Royal Highness and Mr Brooksbank became engaged in Nicaragua earlier this month," a Buckingham Palace statement said.
The princess, eighth-in-line to the throne, began dating Brooksbank around seven years ago after they met while skiing in the Swiss resort of Verbier.
Her grandparents, the Queen and Prince Philip, were said to be "very pleased and wish the couple all the best".
More From This Section
Prime Minister Theresa May also congratulated the "happy couple" in a tweet.
"Jack is an absolutely outstanding young man and Eugenie and he have got to know each other over a number of years, and I'm really thrilled for them," her father Prince Andrew said in reference to his future son-in-law, adding that he was "overjoyed" for the couple.
The parents of Brooksbank, who managed the upmarket Mahiki nightclub in London, also expressed their delight at the news.
Nicola and George Brooksbank said in a statement, "We could not be more delighted with the news of the engagement. We are completely over the moon and are very excited for them both".
Eugenie, who studied English and history of art at Newcastle University, is now a director at the contemporary art gallery Hauser and Wirth in London. She does not carry out any royal engagements and her public profile or work as a member of royal family would not change significantly after the wedding.