the old school of Diana, Princess of Wales, is to be bought by Mohamed Al Fayed for #2.5m, to create a school for traumatised children, it was announced last night. The Harrods chairman said the new centre at West Heath School would be ''a living memorial to Princess Diana and Dodi Al Fayed''.

He used the announcement to add his own voice to continuing controversy surrounding the Diana, Princess of Wales Memorial Fund. A statement on his behalf said he had made his offer ''after the Princess Diana Memorial Fund refused to buy the building''.