The official title of the royal baby, thought to be due on Saturday, July 13, will be His or Her Royal Highness the Prince or Princess of Cambridge.
The baby will be born at St Mary’s Hospital in Paddington, London, where William was born in 1982.
The Mayor of Cambridge, Councillor Paul Saunders, said it was a “great honor” for the historic city.
“It is a great honor and I’m sure the people of Cambridge will appreciate it greatly,” he said.
“I think it’s lovely to continue the close link with the Royal family. I think anything which helps to keep Cambridge in the public eye is a good thing as we rely on tourism.”
Former Cambridge mayor Cllr Sheila Stewart, who met Kate Middleton on the royal visit to the city last year, believes having a prince or princess is a first for the city.
“When we did a lot of research after it was first announced that the couple were to get the title, nothing like that was found. There were some dukes of Cambridge but not a prince or princess,” she said.
The Dukedom of Cambridge was created in 1801 but became extinct on the death of the 2nd Duke of Cambridge in 1904.
It was bestowed upon Prince William on April 29, 2011, by the Queen on his wedding day.
A palace spokesman said: “The royal couple’s child will officially be known as His or Her Royal Highness the Prince or Princess of Cambridge.”
He said any other children the couple have will also be known by the same title.
Anticipation is mounting around the imminent birth, with photographers already camped out outside St Mary’s Hospital.
Once the baby has been safely delivered, Prince William’s first call will be to the Queen on an encrypted phone.
At the same time, the Royal couple’s private secretary, Jamie Lowther-Pinkerton will inform Prime Minister David Cameron and a small number of other highly placed individuals, including the Archbishop of Canterbury.
Back at Buckingham Palace, officials will notify the head of each of the 54 Commonwealth countries and the First Ministers of Scotland, Wales and Northern Ireland.
For the public, an official notice announcing the birth will be placed in a glass-fronted easel and attached to the gates of the Palace.
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