By Nicholas Bieber
She was being driven in a Mercedes S-280 after she left the Hotel Ritz before crashing into a pillar in the Alma Tunnel.
But an article has sensationally quashed this version of events, claiming to have spoken to an 80-year-old retired MI5 agent who has "admitted" he actually assassinated Diana.
The story – now found to be fake – has been shared by hundreds of people online with many fearing the information may be true.
In it, the agent – named John Hopkins – allegedly says her was ordered to kill the Princess as she was "placing the British Crown at risk".
He says: "She knew too many Royal secrets. She had a huge grudge and she was going to go public with all sorts of wild claims. My boss told me she had to die… and we had to make it look like an accident.
"I’d never killed a woman before, much less a princess, but I obeyed orders. I did it for Queen and country."
The story is now going viral, with Royal fans around the world fearing the conspiracy theory may hold some truth.
But the website behind the article, YourNewsWire.com, is in fact a notorious fake news generator.
Fact check website Snopes also describes the source as "a site known for promoting baseless conspiracy theories".
This has failed, however, to stop Diana's millions of adoring fans from sharing the post.
One wrote on Twitter: "Can we just talk about how this retired MI5 agent who has just a few weeks to live confessed to killing princess Diana… wotttt"
Another said: "An MI5 agent on his death bed just confessed to assassinating Princess Diana....this is insane"
For years conspiracy theories have been spread over Diana's death, with a number of claims made about her final moments.