The world-famous yacht enjoyed by the late Princess Diana during her final summer holiday in the south of France has sunk to the bottom of the sea.

The yacht, named Cujo, which was also a favourite among other Hollywood stars, disappeared deep into the Mediterranean Sea after hitting an object off Beaulieu-sur-Mer on the French Riviera on July 29.

The vessel was being enjoyed by a group of people including Cujo’s Italian owner.

All seven people on board were rescued following the accident and taken back to shore without any injuries.

Local police say the boat ended up almost 2500m underwater.

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The police said: “The skipper of the Cujo issed a Mayday. His ship was sinking due to a leak.”

He added: “Rescue boats were sent from Antibes, and, after making sure everyone was safe, gendarmes detected a significant water leak at the level of the starboard front hull.”

The owner tried to keep engines running but failed to keep the boat afloat and it sank around 18 nautical miles off the coast.

According to The Times, local media reported it had around 7,000 litres of fuel on board, but added that there was little risk of significant pollution.

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Cujo originates from an Indian word meaning “unnstoppable force”. It hit headlines in the summer of 1997 when Diana was onboard with Dodi Al-Fayed who owned the boat at the time.

That summer Diana was also photographed on Sokar, the yacht then owned by Al-Fayed’s father.

Cujo was built in Italy in 1972 for businessman John von Neumann. She was fitted with two 18-cylinder engines that ensured she had a top speed of 42 knots.

Following the death of Princes Diana and Mr Al-Fayed in 1997, Cujo fell into disrepair.

She was decommissioned in 1999, and spent years in storage, before being restored by new owners.

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