The palace announced the nuptials after the king received approval from the Swedish government, according to procedures set out in the constitution. No date has yet been set for the wedding but at the press conference the princess mentioned an autumn or winter ceremony.
Jonas Bergstöm proposed to the princess during a trip to Italy earlier this summer. Close to San Michele on the Italian island of Capri, he got down on one knee and asked the princess to marry him
"And I quickly answered: Of course I will," Madeleine said during the press conference.
Princess Madeleine, 27, has two older siblings, Crown Princess Victoria and Prince Carl Philip, making her third in line to the Swedish throne.
Princess Victoria, 31, announced her own engagement earlier this year. She will wed 35-year-old Daniel Westling, who owns several luxury fitness centres in Stockholm, on June 19th next year.
According to Jonas Bergström, the King, the Crown princess as well as her fiancé Daniel Westling were all in on the plans before the trip to Italy.
The couple will now be found a permanent residence together, but where this will be is still unknown. Crown princess Victoria and Daniel Westling will be living at Haga Slott, in Stockholm, where the King spent his childhood years.
But with one royal wedding already costly for the Swedish tax payers - the question still remains who will pay for Madeleines's wedding. Earlier this year, the King asked for more money in order to pay for Crown princess Victoria's coming nuptials. But according to the head of Finance at the Royal Court, Bengt Telland, there is a difference between the two weddings.
"The Crown princess' wedding is more of a matter for the State than Madeleine's, " he told Swedish news agency TT.
However, he added that the matter has not yet been up for discussion.
Prime Minister Fredrik Reinfeldt does not anticipate a request for more funds from the Royal Court in regards to the second wedding. No such request has been forwarded as of yet.