The Daily Star reported that the source explained how the princess would put on shows of affection just for the cameras.
The source also claimed that Mr Fayed called her “ma’am” in private.
The staff worker told journalist Paul McMullan, who was sent to cover the pair’s holiday on the Italian Riviera in the summer of 1997.
A member of Mr Fayed’s yacht crew reportedly told Mr McMullan: “They don’t share the same bedroom.
“He calls her ma’am, and is incredibly deferential and respectful.
“But as soon as she goes outside to wave to the paps, she’s bending over and kissing him and hugging him.”
Despite appearances, Mr McMullan claimed the couple were not in a close relationship.
Speaking in the documentary Sex and Power, he said: “The truth was the opposite.”
This view is echoed by Princess Diana’s private secretary Michael Gibbins who in 2017 claimed she was not in love with Dodi.
Speaking about the summer in which Princess Diana holidayed with Mr Fayed, Mr Gibbins said: “I think frankly she was just having a lovely summer at somebody else’s expense to be perfectly honest.
“When the summer was over, everything would have disintegrated.”
Asked if Diana had ever mentioned a wedding with Mr Fayed, Mr Gibbins added: “Absolutely not.
“Nor do I believe that for a second.
“Superficially she was happy.
“Deep down, more difficult to say.
“She was a pretty complex person.
“Superficially yes, she enjoyed bobbing around on boats with Dodi Fayed.
Source: EXPRESS CO UK