Princess Diana Photo: Dave Chancellor/Alpha)

Princes William and Harry are to build a permanent memorial statue of their mother Diana in the public gardens of Kensington Palace.

The princes hope to unveil the poignant tribute in time for the 20th anniversary of Princess Diana’s death this August.

The Queen, who was publicly criticised after Diana’s death for not flying a flag at half-mast over Buckingham Palace, has given her full backing.

The exact position of the historic statue has not been disclosed but a senior Royal source said it could in view of William and Kate’s home.

A Buckingham Palace spokesman last night told the Sunday People: “The Queen is aware of the plans and supports the wish of the Duke and Prince Harry to memorialise the life and work of their mother.”

A joint statement from Prince William and Prince Harry said: “It has been 20 years since our mother’s death and the time is right to ­recognise her positive impact in the UK and around the world with a permanent statue.

Our mother touched so many lives. We hope the statue will help all those who visit Kensington Palace to reflect on her life and her legacy.”

The Duke of Cambridge, 34, and Prince Harry, 32, are understood to have privately campaigned for the honour to their mother for a ­number of years.

They have formed a six-person committee to commission and ­privately raise funds for the creation of the statue.

The move follows years of ­criticism for a series of failed efforts to build a fitting tribute to Diana after her shock death in a car crash in Paris in 1997 at the age of 36. William was 15 and Harry just 12 at the time.

A string of public memorials and tributes have faltered and faced criticisms for their failure to ­properly commemorate the princess.