Naomi Watts has been signed up to play Princess Diana in Oliver Hirschbiegel’s big-screen portrait of the "people’s princess", Caught in Flight.

The film, which is being made by UK-based Ecosse Films, will focus on the last two years of Diana’s life before her untimely death in August 1997.

Oscar-nominated actress Watts, whose previous credits include turns in King Kong and 21 Grams, said: "It is such an honour 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."

Hirschbiegel, who is best known for directing the Hitler biopic Downfall, said: "I am delighted to have such a truly exceptional actress who embodies the warmth, humanity and empathy of such a global icon as Princess Diana."

And it seems Caught in Flight may not be the only Diana-related film in the next year, as British film-maker Stephen Evans is rumoured to be working on a film adaptation of Closely Guarded Secret, a book written by Diana’s bodyguard, Ken Wharf.

Production on Caught in Flight is scheduled to begin in the UK later this year.