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Naomi Watts to stay in London for Princess Diana role

Naomi Watts is setting up home in the posh London borough where Princess Diana lived in preparation to play the tragic royal on the big screen.

The British-born actress, who grew up in Australia, has been cast in Oliver Hirschbiegel's upcoming drama Caught In Flight, which will tell the story of the last two years of the princess' life before she died in a car crash in Paris, France in 1997.

The star recently admitted that she is "terrified" of playing such a high-profile role, but is taking her research seriously by moving to Kensington in the U.K. capital, the same area where Princess Diana lived in royal residence Kensington Palace.

She will also frequent some of her favourite hang-outs, including The Harbour Club and Beauchamp Place, according to Britain's The Sun newspaper.

A source tells the publication, "Naomi wants to get into character before shooting starts."

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