Pippa Middleton is engaged!

The 32-year-old sister of Duchess Catherine is set to marry hedge fund manager James Matthews, 40, who surprised her by proposing last weekend after first asking her father, Michael Middleton, for permission. 

A source told the Daily Mail newspaper: "James is a traditionalist and very much wanted to do things properly. That meant getting his future father in law's consent."

Another source added that both Michael and Pippa's mother Carole are thrilled, saying: "Mike and Carole are very happy. They like James and they are sure he will make Pippa very happy."

Pippa and James dated briefly in 2012 before reconciling last year, after her split from financier Nico Jackson after three years together. 

James - whose brother is reality TV star Spencer Matthews - is said to be a self-made man, despite coming from a wealthy family. 

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An insider said: "He worked very hard from an early age.

"He's a smart chap but also the sort of bloke you would be proud to call a friend

"He made a huge amount of cash from hedge funds and some more from the London property market. We're talking millions here and you don't do that by the age of 40 unless you are a sharp cookie. And James is very bright."

Another pal added: "Many people will say what a lucky guy James is for landing Pippa. I would say she's the lucky one. He's one hell of a catch."

James' brother Spencer shot to fame on reality TV show 'Made in Chelsea' but had to quit out of 'I'm A Celebrity... Get Me Out Of Here' after it was revealed he was taking steroids. 

Pippa and James' wedding is expected to take place next year.