Heather Mills McCartney will take legal action over tabloid claims that she was a lesbian prostitute, her lawyers have announced.

Lady McCartney’s representatives said the News of the World reports were “untrue and highly defamatory.”

She will launch proceedings after her divorce from former Beatle Sir Paul McCartney is complete.

A statement said: “Heather is very distressed by this article. She continues to recover slowly from her revision amputation operation and has suffered weight loss, anxiety and sleeping problems as a result of the stress and anxiety of the break-up of her marriage.

“The coverage of this in certain newspapers has caused further distress and illness to her.

“The interests of her daughter are of paramount concern. She will defer issue of legal proceedings until the arrangements in relation to the divorce are concluded but intends to sue at that stage all parties including individuals who are intent on damaging her reputation.”

Former prostitute Petrina Montrose told the News of the World last weekend that the 38 year old was a call girl who specialised in threesomes, citing one alleged night with an Arab prince, Adnan Khashoggi.

Montrose said: “Heather was a familiar face in our business.

“I knelt facing the Heather and we performed a sex act on the prince.”

A spokesman for the prince told the paper, “She has repeatedly lied. She was a hooker. I know. I paid.”

Lady McCartney looks set to receive around £200 million from her divorce settlement including custody arrangements for her and Sir Paul’s two year old daughter Beatrice.