Prince William ends rift by asking Fayed sisters to Diana memorial service

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Camilla Fayed, 21, will attend the tribute to Diana at the Guards' Chapel, Wellington Barracks, on August 31.

The princes' decision to ask Miss Fayed to join them and other senior members of the Royal Family at a highly-public event was made in spite of her father's persistent claims that Diana was murdered.

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Al Fayed sisters: Camilla (left) and Jasmine

The Harrods owner, whose son Dodi died with the princess in the Paris car crash, has accused the Duke of Edinburgh of ordering security services to engineer the smash because he could not bear the idea of her having a relationship with a Muslim.

He has also claimed that the princesswas pregnant with Dodi's baby and that the couple planned to marry and move to America.

Although the allegations have deeply upset Diana's close family and friends, sources close to the princes said they thought it was "appropriate" for Miss Fayed, who was Dodi's half-sister, to be invited.

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Olive branch: Prince William has invited Mohamed Fayed's daughters to the memorial service for the tenth anniversary of his mother

"They lost a mother in very tragic circumstances but Camilla also lost a much-loved brother," said one.

"Obviously it would have been impossible to invite Mohamed but they thought it appropriate that someone from his family was invited and, as they have met Camilla in the past, the invitation was extended to her. They are delighted that she has accepted.

"I wouldn't go so far as to say that the past is gone and forgotten but William and Harry want to acknowledge their shared grief."

Both Prince Philip and the Queen will attend the service, as will the Prince of Wales, Duchess of Cornwall and members of Diana's family.

Mr Al Fayed's lawyers recently called for the Queen to be a potent witness and for the Duke of Edinburgh to answer inquiries for the inquest into the princess's death, which is due to begin on October 2, but coroner Lord Justice Scott Baker rejected the requests.

The next pre-inquest hearing will be held on July 27.

Clarence House declined to discuss the guest list yesterday while a spokesman for Mr Al Fayed said he would not comment on such a private matter.