The former working royals are apparently "reviewing their living options" and are particularly fond of the beach city in California.
It would be a homecoming for failed Spotify star Meghan, returning to her childhood hometown as they weigh up leaving Montecito.
Sources say Harry and Meghan have "secretly visited the area a couple of times", reviewing potential properties throughout Malibu.
An insider told the Daily Express: "Harry and Meghan are reviewing their living options with Malibu being a place of interest.
"They have secretly visited the area a couple of times and have been out and about, looking at what’s there. And Meghan knows parts of the region from being there as a kid.
"It is uncertain if they will sell Montecito or just add a Malibu spot to buy. The move consideration comes as Meghan is shifting gears and focus back to Hollywood with WME."
They added: "Being close to Beverly Hills and LA where the deals are done is smart.
"And of course, there is a real Malibu scene where major stars, producers, and studio executives all hang out, socialize and get deals done during dinner and beach parties.
"Meghan has friends who live in the area and she likes spots like Soho House. Certainly, Prince Harry and Meghan would be welcome at many major parties and would be desired guests."
Discussing the couple's schooling plans in Malibu, the source explained: "Malibu has loads of star kids enjoying normal schools.
"It is not a big deal that A-listers' children are all there together."
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