Former Miss World was "paid millions of dollars by Spanish secret service to keep quiet about her affair with King Juan Carlos I"
Ex beauty queen Barbara Rey had the cash paid into an offshore account to make sure she kept quiet about her long-standing romance with Juan Carlos I of Spain, it is claimed.
Spanish media also focused on the shocking claim that the money allegedly paid to Ms Rey, the country's Miss World candidate in 1971, came from public funds that should have been spent on fighting terrorism and organised crime. King Juan Carlos 1 has been described in a devastating book as a professional seducer who had bedded more than 1,500 women.
Barcelona-based author Pilar Eyre, an expert on the Spanish royal family, also wrote that the Spanish monarch made a pass at the British Royal during a holiday Diana and Charles spent with their son at the king's summer palace in Majorca in 1986.
The news website said a spy from intelligence organisation CESID - the equivalent of MI5 and MI6 in Britain - met the blonde in a cafe in Madrid and offered her 3 million Euros in monthly payments to buy her silence.
Barbara Rey, who made it to the last 15 of Miss World after getting a shot at the title when the winner of Miss Spain 1970 surrendered her crown, has denied receiving any money from Spain's old intelligence agency which has now changed its name to the CNI.
She has also insisted she has never had a bank account in Luxembourg in her name.
The Spanish Royal family and their spokespeople have declined to comment.
The astonishing claims about the use of taxpayers' money to prevent the alleged affair becoming public has revived the mystery surrounding a burglary at 66-year-old Rey's Madrid home in June 1997 in which she claimed documents, negatives and video tapes which could compromise 'important people' had been stolen.
Juan Carlos I reigned as King of Spain from 1975 to 2014 when he abdicated in favour of his son Felipe VI.
He has three children with his wife of 75 years Sofia. Their relationship since his abdication is said to have been virtually non-existent and it has been claimed they last shared a bed nearly 40 years ago.
Juan Carlos had to make a grovelling apology in April 2012 over a controversial elephant hunting trip to Botswana at the height of Spain's economic crisis. Juan Carlos had to make a grovelling apology in April 2012 over a controversial elephant hunting trip to Botswana at the height of Spain's economic crisis Barcelona-based author Pilar Eyre, an expert on the Spanish royal family, made the explosive claim about Juan Carlos and Diana in a book she published in 2012.
She said the Spanish monarch made a pass at her during a holiday Diana and Charles spent with their son at the king's summer palace in Majorca in 1986.
According to Eyre, the king made a 'tactile' advance to Diana, then just 25.
Diana herself denied anything untoward had happened but admitted that while the king was 'charming' he could be a 'little too attentive.'
Juan Carlos had to make a grovelling apology in April 2012 over a controversial elephant hunting trip to Botswana at the height of Spain's economic crisis.
The trip came to light after he broke his hip in a fall and had to be flown back to Madrid for surgery Belgian housewife Ingrid Sartiau launched a paternity suit against Juan Carlos shortly after his abdication, claiming her mother told her: 'That man's your father' when he flashed up on television before revealing details to her of a one-night stand in Luxembourg in 1966.
Spain's Supreme Court announced in March 2015 it had refused to accept Ingrid's lawsuit. A spokesman for Spain's Royal Family said today: 'We have no comment to make about the claims made by OKDIARIO about Barbara Rey, Juan Carlos I and the use of public money.'