The Duke and Duchess of Cambridge have named their baby daughter Charlotte Elizabeth Diana, Kensington Palace has announced.
The Princess, who was born on Saturday May 2 at 8.34am, weighing 8lbs 3oz, will be known as Princess Charlotte.
Kensington Palace said in a short statement: "The Duke and Duchess of Cambridge are delighted to announce that they have named their daughter Charlotte Elizabeth Diana.
"The baby will be known as Her Royal Highness Princess Charlotte of Cambridge."
Charlotte is likely to be a tribute to William's father the Prince of Wales as it is the feminine form of the name Charles.
And the middle names of the princess obviously recognise her great grandmother the Queen - Elizabeth II - and her grandmother Diana, Princess of Wales.
The name Charlotte had been a favourite with the bookies during the week but in the last few days had been pushed into second place by Alice.
But betting firms have said they would face a huge payout if any of the heavily backed top five names were chosen by the Cambridges.
Bookies pay out
The betting industry is estimated to have paid out one million pounds to punters who guessed the name Charlotte, according to Ladbrokes.
Spokeswoman Jessica Bridge said: "Charlotte was the hot tip over the weekend and royal watchers up and down the land are quids in.
"We may have lost a fortune but we're paying out with a smile and wish the Duke and Duchess all the best."
But bookies William Hill said they were breathing a sigh of relief that William and Kate picked Charlotte, and not their favourite Alice.
Spokesman Rupert Adams said Charlotte finished as their 3/1 second favourite, with 5,096 punters correctly guessing the name and in total they would pay out just over £100,000 in the name market.
One lucky royal fan - a woman from Barnes - has won £1,400 after placing £400 on the correct name at odds of 5/2 on Saturday evening.
The spokesman said: "Charlotte was a late gamble but we have dodged a bullet as Alice, Victoria and Elizabeth would have been awful lot worse."
Royal fan Munever Halil, from Catford in south east London, said the name Charlotte showed William and Kate were in touch with popular modern names.
The 52-year-old, who spent several hours outside Kensington Palace trying to catch a glimpse of the young family, said: "I so much wanted the name Diana to be in there somewhere.
"I wanted it to be Elizabeth Diana, so I think it's lovely.
"Any name will suit them because they are lovely kids. It's perfect.
"I loved Lady Diana and I feel sad she is not here to see her two grandchildren."
American tourist Emily Markey, 21, said she was particularly pleased with the name.
She said: "I think the name is awesome. My mum's name is Charlotte, so go her.
"I've always loved Princess Diana so I'm really pleased."
Student Jemma Large, 19, from Milton Keynes, said: "I think Charlotte is a nice modern name, and I like the homage to Diana. Obviously the name Elizabeth is nice for the Queen too, so I really like it. I think it is a good choice."
Duke's uncle approves
William's Uncle Earl Spencer tweeted his approval of the names chosen by the Cambridges for their daughter.
His said: "Perfect names. My 2-year old Charlotte Diana will be thrilled at cousinly name-sharing. Is at an age where thinks world revolves around her!"
In choosing to call their daughter Charlotte, the Cambridges have picked a traditional name with royal connections.
Queen Charlotte was the wife of George III, known as the "mad king", and was a keen botanist who founded the world-renowned Kew Gardens.
Their first daughter was called Charlotte and George IV also gave the name to his only child.
It has featured in Kate's family as her sister Pippa Middleton has it as her middle name.