The royal couple married in April 2011 and are expecting their first child.
Duchess Kate was hospitalized earlier this month for extreme morning sickness and dehydration.
A palace representative told People.com Kate and William plan to spend the holiday "privately with the Middleton family."
The celebrity news website said the royal couple's decision was a major break from tradition, but one made with the blessing of William's grandmother, Queen Elizabeth.
William and Kate will later this week head to Sandringham, Norfolk, where the queen and her husband, Prince Philip, are gathered with the rest of the royal family, People.com said.
Ohio crash that killed two caught on camera [VIDEO]
Blake Lively's Christmas wish would bankrupt Ryan Reynolds