The statue will be erected in The Sunken Garden, at Kensington Palace, next year, a place Diana loved to spend time with her children, Diana was fond of, not only the gardens, but also the staff who maintained it.
Harry and Meghan left their roles as senior members of the Royal Family earlier this year to move to the USA, where they planned to start their own careers and plant roots with their son, Archie.
The statue itself will be created by Ian Rank-Broadley, the sculptor behind the image of Queen Elizabeth that has been used to decorate British coins since 1998.
In the statement, Harry and William wrote: "Our mother touched so many lives".
The legacy of the so-called "Princess of the people" as was also recognized Diana, over several years and part of it, are his two children, Harry and William, who each in their own way pay tribute to the memory of their famous and beloved mother.
Today marks 23 years since Princess Diana, aged 36, was killed in a vehicle crash in Paris and the artwork was commissioned to mark this anniversary but the installation was delayed by the COVID-19 pandemic. William was just 15 when Princess Diana died, and Harry was only 12.
A source via Mirror gave insight on the princes' thoughts on the statue and said: "Prince William and Prince Harry have dreamed of doing this for a long time". It is unclear if Prince Harry will return to Kensington Palace to unveil the statue with his brother next summer.
However, this contradicted the claims made by royal correspondents Omid Scobie and Carolyn Durand in their new Sussex biography, "Finding Freedom".
The brothers announced the commission of the statue two years ago on the 20th anniversary of Princess Diana's death.
Plans for the statue were reportedly announced originally in February 2017, the year which marked an official twentieth anniversary since Diana's death at the young age of 36.
The poignant date would have been Diana's 60th birthday and the news raised hopes the project will bring the brothers closer together.
"We look forward to unveiling the statue, which will allow all those who visit Kensington Palace to remember and celebrate her life and legacy", the princes said in a joint statement at the time.