Pippa Middleton Is Engaged to James Matthews!

Pippa Middleton is officially off the market!

The Duchess of Cambridge's younger sister confirmed her engagement to her boyfriend James Matthews through an official Kensington Palace spokesperson.

"The Duke and Duchess of Cambridge are absolutely delighted with the news," the palace tells ET.

WATCH: Pippa Middleton Continues Her Reign as Wimbledon's Fashion Queen in Chic Retro Dress

Middleton's father, Michael Middleton, said in a statement via the BBC, "They make a wonderful couple and we wish them every happiness together." 

Matthews, who runs the British hedge fund Eden Rock Capital Management, popped the question on Sunday in England's Lake District.

"I would say she's the lucky one," a source told the Daily Mail. "He's one hell of a catch."

The on-again-off-again couple rekindled their relationship in January after Middleton split from her longtime beau, Nico Jackson, in October. Matthews and Middleton first started dating in 2012.

The Daily Mail reports that Matthews, 40, asked Middleton's father for her hand in marriage prior to the proposal and that the wedding will most likely take place next year.

WATCH: Pippa Middleton Flashes Lots of Leg at Wimbledon

This news should add to Middleton's radiant glow, which we saw at Wimbledon earlier this month. The 32-year-old socialite was flawless in a blue and orange Tabitha Webb Edie dress.

Middleton quickly became a fashion icon after Prince William and Duchess Kate's wedding in 2011, when she made headlines for her curve-hugging bridesmaid dress, so we can't wait to see what her wedding gown might look like.