Has Prince Harry finally found happiness?

According to a lengthy and detailed new report in Britain's Sunday Express, the handsome red-headed royal, 32, is secretly dating American actress and humanitarian Meghan Markle, 35, who's best known for playing paralegal Rachel Zane on "Suits."

WP#JRAK / WENN; Nikki Nelson / WENN / .

A source told the newspaper that Harry is "besotted" with the actress, a Los Angeles native who now lives in Toronto where she films her USA Network show.

"He's happier than he's been for many years," explained the source.

"He's in a very relaxed period of his life and Meghan has come along at the right time. They are taking each week as it comes and just enjoying each other's company but it's fair to say that they love seeing each other and there's a definite chemistry between them," the source added.

The Sunday Express reports that Harry and Meghan, who also runs the website The Tig, are believed to have met in May when he was in Toronto promoting the Invictus Games.

Meghan -- who split from film producer husband Trevor Engelson two years after their 2011 wedding, reports the paper -- has traveled to London in recent months.

In early July, she posted several photos from London on her Instagram page including two in which she bid farewell to Harry's hometown.

"Bye bye #London 👋🏽," she captioned one pic.

Bye bye #London 👋🏽

A post shared by Meghan Markle (@meghanmarkle) on

"Gutted to be leaving #London," she captioned another.

Gutted to be leaving #London - Thanks for a yummy breakfast @anderson_markus @sohohouse

A post shared by Meghan Markle (@meghanmarkle) on

According to the Sunday Express, Meghan was seen taking in some tennis from the royal box at Wimbledon on June 28 and July 4.

Even more exciting? Harry -- who split with his last girlfriend, Cressida Bonas, in 2014 -- has reportedly hosted Meghan at his Kensington Palace digs and introduced her to his brother, Prince William, and sister-in-law Duchess Kate.

"William and Kate really liked her and she fitted in straight away," the insider told the Sunday Express.

"Harry has been desperate to keep the relationship quiet because he doesn't want to scare Meghan off," the source told the newspaper. "He knows things will change when their romance is public knowledge but he also knows he can't keep it a secret for long."

"It's too early to say if the relationship will lead to anything long-term but who knows?" added the source. "At the moment they are just taking it a step at a time and seeing how things develop."

Harry is reportedly attracted to Meghan's commitment to humanitarian work -- she's a well-traveled UN Advocate for Women's Leadership and Political Participation who supports the UN's gender equality campaign. She's also visited Rwanda to work on a clean water project and has spent time in Afghanistan lending her support to military forces and their families, reports the paper.

"Missing my time in #rwanda and eager to go back soon (cc:@worldvision) #takemeback #grateful#bethechange ✨ also, this guy on the bottom left....#swoon 💕💕💕💕," she captioned a throwback pic on Instagram in July.

Earlier this year, she also took on a role as a global ambassador for World Vision Canada.

"Harry loves to hear about Meghan's humanitarian work and he thinks she's doing a fantastic job," said the source.

She also apparently doesn't care that he's a prince.

"Meghan is a very confident and intelligent woman and she's not overawed mixing with royalty," said the insider. "That's one of the things Harry admires about her."

Also in her favor is the fact that Meghan's not just beautiful but intelligent: She graduated from Northwestern University, where she studied theatre and international relations, reports the Sunday Express. She later worked at the US Embassy in Buenos Aires before eventually getting into acting in the early aughts.

"The romance is in its early stages," added the source, "but it's no exaggeration to say he's besotted with her."