Australian actress Naomi Watts will portray the late Princess Diana of Wales in an upcoming movie "Caught In Flight" which is about the tragic British royal, focusing on the last two years of her life.

According to the British company Ecosse Films, British-born Watts, 43, is rumored to have beaten American actress Jessica Chastain for the coveted part of the people's princess.

"It is such an honor to be able to play this iconic role. Princess Diana was loved across the world, and I look forward to rising to the challenge of playing her on screen," said the actress of "The Ring" movie. The film is the latest in a series of biopic to emerge in recent times.

"Caught in Flight" will be directed by Oscar-nominated German director Oliver Hirschbiegel when it begins production in the United Kingdom next year. "I am delighted to have such a truly exceptional actress who embodies the warmth, humanity and empathy of such a global icon as Princess Diana," the director said.

The movie is based on a screenplay by "The Libertine" playwright Stephen Jeffreys and it will show how the princess finally found true personal happiness and achieved success as an international campaigner and humanitarian.

Watts, who is filming the drama "The Grandmothers" with fellow actress Robin Wright, still faces competition from another biopic about the princess. This one, on the other hand, will cover Princess Diana's years leading up to her divorce.

The "Iron Lady" producer Stephen Evans is set to make the film based on the book "Diana: Closely Guarded Secret" by Diana's former bodyguard Ken Wharfe.