United States officials Monday denied reports that American intelligence forces were listening in on Princess Diana's phone calls the night she died.

"Any suggestion the CIA spied on Princess Diana is ludicrous," said Mark Mansfield, a spokesman for the agency.

The British newspaper The Observer reported this weekend that the U.S. Secret Service was bugging Diana's phones without permission from British security officials, citing a comprehensive report on her death to be released Thursday by the British government.

Observer: U.S. Bugged Princess Diana's Phone on Night of Crash

The report was completed by ex-Metropolitan Police Chief John Stevens.

The report by Metropolitan Police Chief John Stevens allegedly details how U.S. surveillance forces admitted listening to her conversations as she stayed at the Ritz hotel on Aug. 31, 1997, but failed to notify British officials.

The Observer says U.S. officials have assured Stevens that 39 classified and secretly recorded conversations offer no insight into Diana's death.

It remains unclear whether the report says exactly why the officials were tapping her phone to begin with.

However, U.S. officials deny the report altogether.

"There's no truth to the claim that the U.S. Secret Service was monitoring Princess Diana's calls," a Homeland Security spokesman told FOX News

"As near as I can tell, UK tabloids have not been consistent in how they've covered this aspect of the story, suggesting 'secret service' and 'Secret Service,' which have different connotations there, as well as indicating 'foreign intelligence officers' were involved.

"No matter how they slice it, the United States Secret Service was not involved," he said.