Carrie Prejean, the Miss California who told the world she did not believe in gay marriage, has been rocked by a sex tape scandal.

According to gossip website TMZ, Prejean was shown the video by Miss California USA pageant officials during negotiations in which she demanded a $1 million settlement.

The beauty queen is embroiled in a legal dispute with K2 productions, the directors of the Miss California USA pageant.

She was sacked after the controversial comments, although pageant bosses said it was because she had made appearances in her role without their permission. She sought the $1 million settlement after accusing them of releasing personal information about her, reportedly that she had breast implants.

Prejean and her mother were said to be visibly shocked when the video was shown to them.

In the tape, Prejean is seen alone pleasuring herself. TMZ said it had a copy of the video for months but decided it was too “racy” to show.

TMZ reported: “We’re told it took about 15 seconds for Carrie to jettison her demand and essentially walk away with nothing. As we first reported, the pageant is paying around $100,000 to her lawyers and publicist – a fraction of her bills. She pockets nothing in the settlement.”

The Miss Calfornia saga began when blogger Perez Hilton asked Prejean her views on gay marriage in April during the Miss American contest.

She replied: “I believe that a marriage should be between a man and a woman.”

She was booed and went on to lose the contest. It later emerged that despite her apparently strict Christian views, she had posed for topless photographs.