British passport for New born without MN1....? (father ILR)

Hi,
I am on ILR and wife is on ILR dependent visa (wife will qualify for ILR in 2020) and we are expecting a baby in 2 months time hence planning in advance. can I apply for my new born for British passport directly without applying for naturalisation(without MN1) ?

I read somewhere that new Born in the above situation don't need naturalisation and can directly apply for British passport ? Apologies if this has been discussed before but couldn't find firm answer or UKBA link.

If anyone has gone through this process recently please advise the steps. Would be really helpful.

As at least one of you has ILR, if the baby is born in the UK, it will automatically be British otherwise than by descent, and you can apply straight for the passport.

If one parent has ILR
AND

If child born in the UK;

• the child is born a British citizen and you can apply for a passport directly.

If child born outside the UK;

• the child follows the status of the less-privileged parent;
  the child can register at discretion when the second parent naturalises.