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Diana, the first wife of the brother's father the
heir-to-the-throne Prince Charles, was killed when the limousine
carrying her and her lover Dodi al-Fayed crashed in a Paris
tunnel in August 1997.
William was 15 and Harry was 12 at the time.
"It has been 20 years since our mother's death and the time is
right to recognize her positive impact in the UK and around the
world with a permanent statue," William, 34, said in a
statement.
The princes have formed a committee to advise on the sculptor
and to raise private funds to pay for the statue which will be
located in a public garden at Kensington Palace.
Work on the statue will begin soon and it is hoped that the
statue will be unveiled before the end of the year, the
statement from their office said.
The first permanent memorial to her, a 210-metre (689-foot) long
fountain was unveiled in Hyde Park in 2004 after years of
bureaucratic wrangling and squabbling over the design.
It had to be closed down a number of times after its opening and
a committee of lawmakers later said it was "ill-conceived and
ill-executed".
William announced earlier this month that he would move into
Kensington Palace with his wife Kate and children, George and
Charlotte, from his current home in eastern England when he
gives up his job as an air ambulance pilot to focus on royal
duties full-time later this year.
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