The former royal butler had come under a preliminary police inquiry after a newspaper reported he had admitted telling "red herrings" to the hearing which ended last month.

But the Metropolitan Police Service (MPS) said in statement there was insufficient admissible evidence to prove that an act of perjury had been committed.

The statement said: "The MPS has reviewed the available evidence in relation to the perjury allegations made against Paul Burrell and sought the view of both the Crown Prosecution Service and (inquest coroner) Lord Justice Scott Baker.

"As a result we have reached the decision that there is insufficient admissible evidence to prove that an offence of perjury has occurred and therefore do not believe it to be appropriate to instigate a police investigation."

After giving evidence to the inquest in January, Mr Burrell returned to the US, where he spends most of his time, but was secretly recorded in a New York hotel admitting that he had not told the "whole truth" to the inquest.

The Sun newspaper reported the former butler's comments, which included the confession: "I was very naughty, and I laid a couple of red herrings."

The coroner subsequently demanded the ex-aide return to explain the discrepancy but he refused, sending a statement in which he claimed he had simply been drunk and showing off.

Lord Justice Scott Baker, in his summing-up to the jury, suggested Mr Burrell's behaviour had been "shabby".

The inquest jury later returned verdicts that Diana and her lover, Dodi Fayed, had been unlawfully killed by the paparazzi and driver Henri Paul.