Kate Middleton, Prince William Baby Name Honors the Queen? (VIDEO)

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(Reuters/Lefteris Pitarakis)Britain's Prince William and Catherine, Duchess of Cambridge, arrive at a reception in aid of the National Memorial Arboretum Appeal at St James's Palace, London, November 10, 2011.

Kate Middleton and Prince William have reportedly selected a name for their unborn baby, with sources claiming the royal couple is in fact expecting a girl.

The Duchess of Cambridge, 31, is said to be 18 weeks along in her pregnancy with St. James' palace previously confirming the baby is due in July. A new report claims that she and the Duke of Cambridge, 30, named their unborn baby in honor of Queen Elizabeth II.

Sources claim the royal couple will name their baby Elizabeth Diana Carole, which honors both Prince William's grandmother the Queen along with his late mother Princess Diana. Carole was reportedly chosen to honor Middleton's mother, Carole Middleton, according to Marie Claire UK.

The baby name speculation follows an announcement made in January by Queen Elizabeth, who revealed that Middleton's first child with hold the formal title of prince or princess.

In a formal decree issued on Middleton's birthday, Queen Elizabeth II declared that the Duke and Duchess of Cambridge's first child will hold a royal title and will also be referred to as His or Her Royal Highness, according to People magazine. The legal decision overturns a 1917 decree issued by the Queen's grandfather, King George V.

(PHOTO) Reuters/Lewis Whyld/PoolDuchess of Cambridge Kate Middleton is rumored to have named her unborn child in honor of Britain's Queen Elizabeth

"It says, 'The Queen has been pleased by Letters Patent under the Great Seal of the Realm dated 31 December 2012 to declare that all the children of the eldest son of the Prince of Wales should have and enjoy the style, title and attribute of royal highness with the titular dignity of Prince or Princess prefixed to their Christian names or with such other titles of honour,'" a declaration signaled in The London Gazette stated.

The historic decision reportedly adheres to proposed changes in legislation aiming to eliminate gender discrimination in the line of succession. The British government and Commonwealth officials have initiated the procedure of improving outdated laws with the goal of allowing a firstborn girl to succeed the throne regardless of whether or not she is followed by a boy.