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Updated 10 Feb, 2012 09:05am

Naomi Watts as Lady Diana

The duo was in a discreet relationship that which started in 1995 and ended near her death in late August 1997.

The movie will shed a light on how their hidden relationship took life and then reached its end before the time of her unfortunate departure from earth.

Director Oliver Hirschbiegel describes the movie as, "a compelling portrait of Diana, Princess of Wales during the last two years of her life".

Watts, 43, said it was "such an honor to be able to play this iconic role".

“Princess Diana was loved across the world, and I look forward to rising to the challenge of playing her on screen," she added.

Hirschbiegel, who brought to screen Hitler’s final days in his film Downfall back in 2004, chose Watts over the US actress Jessica Chastain because of how she personifies various qualities of the late princess.

The Oscar nominated actress, Watts is recognized for her inspiring work in movies like King Kong, The Ring, 21 Grams, and recently alongside Leonardo Di Caprio in J. Edgar.

Produced by Ecosse Films, the movie will begin shooting in the UK later this year.

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