Miss Davy, 23, will join Allen and Overy later this year after completing a postgraduate law course at Leeds University.
George Allen set up the firm with Thomas Overy in 1930 and six years later cemented the reputation of his company by acting as the king's solicitor during the abdication crisis.
Chelsy Davy has accepted a post at a law firm and will start work later this year after finishing her degree at Leeds University
Edward turned to Mr Allen - whom he reportedly nicknamed Poker Face - during the dramatic period which led to the monarch giving up his throne to marry American divorcee Wallis Simpson.
Miss Davy will complete her course in the spring before heading to London to spend the next two years working as a trainee solicitor with the law firm, reported Hello! magazine.
The 23-year-old reportedly ended her relationship with Harry, 24, after the couple returned from a holiday on the island of Mauritius a few weeks ago.
The split has been described as amicable by royal sources and the pair are said to still be friends.
A spokeswoman for Allen and Overy confirmed the firm had made an offer to Miss Davy, which she had accepted.
Allen and Overy is a leading commercial law firm which has its headquarters in the City and offices in more than 18 countries.
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