Chelsy treats Harry to a romantic week in the Med

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The couple put paid to rumours that they are on the rocks by kissing and cuddling their way through last week's Concert For Diana at Wembley Stadium.

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Harry displays his affection for Chelsy

They will celebrate their three-year anniversary with a romantic trip to the Med.

Zimbabwean-born Chelsy, 21, is living in a flat in London's Hyde Park with her brother Sean and friends say she plans to spend the rest of the summer in the UK.

She is said to be so delighted to be reunited with 'Haz', as she affectionately calls the 22-year-old Prince, that she is planning the holiday as a surprise for him.

'Chelsy intends to whisk Harry away for some fun in the sun. They couldn't be happier together,' said a mutual friend.

Chelsy recently gave Harry a watch to mark their anniversary and she may take up a place at Bristol University in September so they can be close.

They had been rumoured to be on the verge of splitting after reports that Harry had been unfaithful while on Army training in Canada.

But a friend said: "They are closer than ever. She spent a lot of time and money choosing a beautiful watch for him as an anniversary present.

"Chelsy is tough and won't take any stick from him. But she knows that a lot of stories about him flirting with girls are exaggerated."

Given his father's turbulent history with the Royal Family, it was surprising to see Mohamed Al Fayed's son Karim in the Royal Box at the Concert For Diana.

The 24-year-old was happily cheering on the acts accompanied by his father's new head of Press, former Sky News Royal correspondent Katherine Witty.

"Katherine clearly still has good Royal connections because they had two of the best seats. It was unusual for a Fayed to be there. Other family members had wanted to go but were advised to stay away."