BURRELL: I NEVER HAD SEX WITH DI; Princess's butler denies lurid claims by his brother-in-law.

Byline: By Paula Fentiman

FORMER royal butler Paul Burrell yesterday denied having a sexual relationship with Princess Diana.

He said there was "not one shred of truth" to claims of an affair made by his brother-in-law Ron Cosgrove.

Burrell said: "Anyone who knows me, who knew the princess and who understands the boundaries and decencies of royal service, as well as the integrity and trust which existed within our working relationship at Kensington Palace, will know just how fanciful, distasteful and malicious these claims truly are."

Cosgrove told a Sunday newspaper that, in 1993, Burrell confessed to him that he and Diana were sleeping together.

Cosgrove claimed: "Paul told me that he'd get a call from Diana in the middle of the night specifically to have sex with her.

"I was dumbfounded. I'm not sure if it was just to be relieved of the secrecy or simply to brag about it."

Furniture dealer Cosgrove, 61, is the brother of Burrell's wife Maria.

Burrell and Maria said they were consulting lawyers in relation to Cosgrove's claims.

He said he thought his brother-in-law may have "invented" the claims out of spite because he had recently refused to give him money.

Burrell, 50, added: "Myself and my wife Maria feel tremendously sad and hurt that he has resorted to such vengeance by way of response."

Cosgrove said that on a visit to see family in Cheshire in 1993, Burrell asked if they could speak in private.

The pair went to the Peal of Bells pub in Holt where, Cosgrove said, Burrell made his claim about Diana.

Cosgrove said: "He clearly had something on his mind. Then, during the conversation, he suddenly tells me he's been having a sexual relationship with Princess Diana.

"I told him if it was true, I was disgusted with him because he was married to my sister and cheating on her with another woman.

"He just replied, 'Yes, but it IS the princess'. I couldn't believe what he was telling me. It was clear he wanted to get all this off his chest."

Cosgrove said Burrell repeated the claim a year later at a family party to celebrate Maria's 40th birthday.

And he claimed Burrell later came to him in tears, claiming Diana's demands had eased off because she'd fallen in love with heart surgeon Hasnat Khan.

Burrell insisted yesterday he had been a "diligent and professional employee" when he was Diana's butler.

Speaking from the family home in Florida, Maria said she was "hugely embarrassed" by her brother's claims.

Cosgrove also claimed that Burrell had told his family he once saw the Queen naked while she chased a corgi around her bedroom.

Last night, Cosgrove insisted he was telling the truth over the claims and said he stood by "every word".

Last month, Scotland Yard said Burrell would not be investigated for perjury following claims that in January, he did not tell the "whole truth" to the inquest into Diana's death in a Paris car crash in 1997.

CAPTION(S):

ALLEGATIONS: Paul Burrell with Princess Diana in 1997 and, above, with his wife Maria; CORGI CHASE: The Queen