A velvet hat signed by Princess Diana and Catherine, Duchess of Cambridge, is set to go up for auction.

Princess Diana

Princess Diana

The red velvet hat will go under the hammer in March at a celebrity collection auction set up by Guernsey's Auction House in New York City, and although it is unknown what the starting bid will be for the collectable, it will likely be a hefty sum.

The accessory - which features a delicate red silk ribbon tied in a bow at the front - has been signed by both the late Princess Diana, who was fatally injured in a car crash in 1997, and Duchess Catherine, who is married to Diana's son Prince William.

Princess Diana wrote on the hat's brim in silver pen: "Much love, Diana"

Duchess Catherine, 35, appears to have simply written her name in black beside the late royal's inking.

According to Vanity Fair magazine, Guernsey's Auction House describes the piece as: "A simple hat [signed by] two of the world's most elegant and beloved women, beautifully displayed in a House of Windsor glass case measuring 25 x 25 x 9 in."

It is unknown as yet whether or not either of the beautiful royals ever wore the hat, or if it belonged to a fan of the famous family who managed to get both Princess Diana and Duchess Catherine to sign it.

It isn't the first time items related to Princess Diana have been auctioned either, as six of her handwritten letters sold for a combined price of over £15,000 when they went under the hammer earlier this month.

One letter - which sold for £2,000 - detailed her youngest son Prince Harry's mischievous ways at school.

The letter read: "[Harry and William] are well and enjoying boarding school a lot, although Harry is constantly in trouble."