The 59-year-old butler of the late Princess - who died in a car accident in Paris in September 1997 - thinks Diana would have approved of the Prince's wife-to-be because she symbolises the ''way forward''.
Asked what he makes of the former 'Suits' actress, Paul explained: ''What a force for good she is! Mixed-raced, American divorcee - fantastic!''
Paul also believes that the likes of Meghan and Harry, as well as Prince William and the Duchess of Cambridge, represent the new, more progressive image of the British royal family.
During an appearance on ITV's 'Good Morning Britain', Paul was asked whether Diana would have approved of Meghan and he relpied: ''Absolutely. She'd have picked her because that is the way forward. Watch young Team Windsor. It's not about the old guard anymore.
''It's about the young Team Windsor who live at Kensington Palace, they are the future of our Monarchy. They will shape it, they will bring it forward to the people, they will reach out onto the streets and embrace people. That's what's going to happen.''
Meanwhile, Paul recently admitted he thought Princess Diana was ''playing a trick'' on him during her final moments.
The former butler couldn't believe she was dying, and now wishes Diana had taken him with her when she passed away.
He recalled: ''When she died, I sat with her, I held her hand and I said to her, 'Wake up, wake up, you're not really dead are you? You're still alive and you're playing a trick on me'.
''She didn't open her eyes and I said, 'Why did you leave me here? Why didn't you take me with you? Because my place is to look after you.'''
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