A Jacques Azagury gown worn by Princess Diana in 1985 has broken a new fashion record after selling for 11 times its estimated price.

The black velvet evening dress had been estimated to sell for around $100,000 (£78,776) when it went under the hammer at Julien’s Auctions in Hollywood.

However, it fetched a staggering $1,148,080 (£904,262) – making it the most expensive dress worn by the late princess to be sold at auction.

The previous record holder, a 1991 Victor Edelstein velvet gown, sold for $604,800 at an auction in January.

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The most expensive item of clothing ever worn by Diana remains her iconic black sheep jumper, which fetched a staggering $1.14m (£920,000) in a Sotheby’s auction in New York in September.

Diana initially donned the frock in Italy in 1985 while on a royal tour with her then-husband, Charles, and again to the Vancouver Symphony Orchestra in 1986.

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The collector’s item was constructed with fabric chosen by world-renowned textile merchant Jakob Schlaepher and featured metallic embroidered stars carefully threaded by the design team at Jacques Azagury.

The ballerina skirt was considered a nod to her patronage of the English National Ballet and her love of dance.

Also on sale at the auction was a pink crepe blouse worn by Diana for her engagement portrait in 1981.

It sold for $381,000 (£300,990) – nearly four times its original estimate of $80,000 (£63,000).

A Givenchy dress worn by Audrey Hepburn in the 1963 comedy Charade, a sleeveless gown worn by Gloria Swanson in the 1950 noir film Sunset Boulevard and Barbra Streisand’s sailor dress from a 1960s special called My Name Is Barbra were also sold at the event.

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