The gown, which was made in case anything went wrong with the original, was commissioned by Diana as an identical match for her lavish bridal gown and made by the same designer, David Emanuel, the UK's Daily Mail reports.

The ivory taffeta replica dress had belonged to a private American collector, who decided to auction the dress. It was bought at the auction by a fashion museum in Chile.

Auctioneer Kerry Taylor said following the wedding the dress was originally put on show for tourists.

"The dress was made for Madame Tussauds as a replica of Princess Diana's gown, and was on show there for tourists to see," Taylor said.

"It was sold to a private collector some years ago, who has now decided to sell it."

Princess Diana's replica shoes, which had the initials C and D joined together with a delicate heart on the soles, were also sold at the auction.

The shoes, which had remained with the maker Clive Shilton since the day of Diana's wedding, were sold at the auction to a private buyer for $55,033.

Taylor said the dress and shoes "are beautiful, really exquisite".

"Historically these items are very important and they have been hidden away in private collections for years," Taylor said.

"The shoes are being sold by Clive Shilton. They are identical to the ones Diana wore for her wedding — absolutely the same.

"They were made in case her first pair got stained or damaged, or something happened to them on the day — these were kept just in case."

"This sale demonstrates that even in these difficult economic times that the appetite for fine haute couture is undiminished and we are already looking forward to our next auction in February."