Kate Middleton gave birth to the baby girl on Saturday morning and today the official Twitter account for Kensington Palace confirmed her name.
A post read: "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."
Following the Princess' birth, there was an overnight surge in bets that Kate and William would call her Charlotte.
Elizabeth was also one of the top names betted on, and there was much speculation that Diana, William's late mother's name, would be included.
Yesterday Kate and William released an official statement, thanking people for their well-wishes and congratulations.
The statement read: "[They] are highly grateful for the messages of congratulations they have received from people people all over the world.
"It means a great deal to them that so many people have celebrated the arrival of their new daughter."