"After careful consideration and in consultation with the King and Queen, Princess Madeleine and Mr. Christopher O'Neill have decided that their child will be born in New York," Svante Lindqvist at the Royal Court wrote in a statement.
The baby, set to become fifth in line to the Swedish throne, is expected to arrive at the end of February 2014.
Writer and royal expert Roger Lundgren has explained Madeleine's decision to give birth in New York as a purely practical decision.
"She has had a tough pregnancy, she missed the Nobel banquette for example, and it is simply more convenient to give birth there than in Sweden," he said.
"But many here at home will probably be disappointed, they want their princess back home in Sweden, as part of the royal family. The fact that Madeleine will give birth abroad cements a distance to her."
Lundgren explained that the decision carries no constitutional consequences.
"It has no constitutional significance where she gives birth, as the King and Queen have given their approval."
"Today we live in a global world, we live around the world and experience new things. This will be an international child which will get the best of different worlds," Lundgren told the TT news agency.